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The three main accounting statements are the income statement, the balance sheet, and the cash flow statement. 

The income statement provides information about a company’s revenues and expenses over a specific period, ultimately showing its profit or loss. It details how much money the business earned and spent, helping to assess operational efficiency.

The balance sheet offers a snapshot of a company’s financial position at a specific point in time. It lists assets, liabilities, and shareholders’ equity, allowing stakeholders to evaluate the company’s net worth and financial stability.

The cash flow statement tracks the flow of cash in and out of the business, categorizing it into operating, investing, and financing activities. This statement is essential for assessing the company’s liquidity and overall cash management.

Together, these statements provide a comprehensive view of a company’s financial health and are crucial for decision-making by management, investors, and analysts.