Which documents communicate accounting information?

The Income Statement and Balance Sheet are fundamental financial statements that provide crucial accounting information for a business. The Income Statement summarizes revenues, expenses, and profits or losses over a specific period, giving stakeholders insights into the company’s operational performance. On the other hand, the Balance Sheet presents a snapshot of the company’s financial position at a given point in time, detailing assets, liabilities, and equity, which helps assess the overall financial health and stability of the business. Both documents are essential for understanding a company's financial situation and making informed decisions.

In contrast, marketing plans and budgets, business strategy reports, and employee performance reviews serve different purposes within an organization. Marketing plans focus on strategies to promote and sell products, while business strategy reports outline broader goals and methods for achieving them. Employee performance reviews assess individual contributions towards company objectives but do not convey financial performance or accounting information. Hence, the Income Statement and Balance Sheet are the primary documents communicating accounting information.