$1-1.$ General$-$purpose financial statements are designed to meet the needs of external decision makers. They are

general purpose because they are designed to be used diverse groups of decision makers, such as investors,

creditors, and other interested parties.

The components of general$-$purpose financial statements typically include:

Income statement: A periodic statement of results of operations.

Comprehensive income statement: A periodic statement of results of operations and other comprehensive income.

Balance sheet: A periodic statement of financial position.

Statement of cash flows: A periodic statement of cash inflows and outflows.