The article discusses the importance of basic financial statements in showing a company's financial performance. These statements include the balance sheet, income statement, comprehensive income statement, cash flow statement, and changes in owner's equity statement. The balance sheet provides a snapshot of a company's assets, liabilities, and net worth. The income statement shows revenue and expenses over a period. The comprehensive income statement summarizes a company's net assets and changes in equity. The cash flow statement tracks cash entering and leaving the company. The changes in owner's equity statement show equity changes. Notes to financial statements offer detailed information on a company's operations and financial position. Balance sheets have different formats and consist of assets and liabilities. Various criteria must be followed when entering positions in a balance sheet.