Financial statements are formal records summarizing a company's financial transactions, results, and position. They include the income statement, displaying revenues and expenses; the balance sheet, outlining assets, liabilities, and equity; and the cash flow statement, detailing cash inflows and outflows. Financial statements provide vital information to stakeholders, such as investors, creditors, and regulators, enabling them to assess the company's performance, profitability, and financial health. These statements play a key role in decision-making, financial analysis, and ensuring transparency and compliance in business operations.