Which of the following is NOT among the Basic Financial Statements?

The correct answer identifies that the Retained Earnings Statement is not classified among the Basic Financial Statements. Basic Financial Statements typically consist of four key components: the Income Statement, Balance Sheet, Cash Flow Statement, and Statement of Shareholders' Equity.

The Income Statement provides information about a company's revenues and expenses over a specific period, leading to net income or loss. The Balance Sheet presents a snapshot of a company’s assets, liabilities, and equity at a particular point in time, reflecting its financial position. The Cash Flow Statement details the inflows and outflows of cash, categorizing them into operating, investing, and financing activities, which helps assess liquidity and cash management.

While the Retained Earnings Statement conveys changes in retained earnings over a period and complements the Income Statement and Balance Sheet by showing how profits are reinvested or distributed, it is not considered one of the foundational financial statements. Instead, it is often included as part of the Statement of Shareholders' Equity, illustrating a component of equity rather than standing alone as a primary financial accounting document.