Final answer:
Common shares appear on the balance sheet, which lists company assets, liabilities, and shareholder's equity, indicating ownership in a company.
Step-by-step explanation:
Common shares appear on the balance sheet of a company. The balance sheet is an accounting tool that lists assets and liabilities, and also includes shareholder's equity, where common shares are categorized. Common shares represent ownership in a company and are recorded at the point of sale to investors, thus contributing to a company's equity. Common shares are not shown on the retained earnings statement, income statement, or cash flow statement; these financial statements reflect different aspects of a company's financial health. The income statement shows a company's revenues and expenses, retained earnings statement displays the cumulative profits retained in the business, and the cash flow statement shows the inflows and outflows of cash.