Answer:
There are four main types of prepared financial statements: income statement, balance sheet, cash flow statement, and statement of changes in equity.
An income statement shows a company's revenues and expenses over a period of time, such as a month or a year. It helps to show if a company is making a profit or a loss.
A balance sheet shows a company's assets, liabilities, and equity at a specific point in time. It helps to show a company's financial position.
A cash flow statement shows how much money a company is bringing in and spending over a period of time. It helps to show a company's liquidity.
A statement of changes in equity shows how a company's equity has changed over time. It helps to show how much money a company has invested in itself and how much money it has paid out to shareholders.
The most favored statement by the potential buyers of companies would be the cash flow statement, because it shows how much money a company has coming in and going out, and it helps to predict the company's future financial health.