Financial statements are like a report card for a company, showing how much money it made, what it owns, and what it owes. They are shared with people like investors. The main financial statements are:

• Profit and Loss A/c: Shows if the company made a profit or loss by listing income and expenses.
• Balance Sheet: Shows what the company owns (assets), what it owes (liabilities), and the owners’ share (equity) at a specific time.
• Cash Flow Statement: Shows how cash comes in and goes out (from business activities, investments, or loans).

These three are part of the financial statements.

Ledger Account: This is like a notebook where the company records all its transactions (e.g., sales, expenses) during the year. It’s used to prepare the financial statements, but it’s not a financial statement itself—it’s just a tool for accountants to organize data.

Answer:
3. Ledger Account is not part of the financial statements because it’s used to create them, but it’s not shown in the final report. The other three are actual financial statements.