What is the main purpose of a financial statement?

The main purpose of a financial statement is to document financial activities and summarize assets and liabilities. Financial statements provide a clear and organized view of an individual's or a business's financial position at a specific point in time. They typically include important information such as income, expenses, assets, liabilities, and equity, allowing individuals or organizations to assess their overall financial health. By summarizing this information, they help users make informed decisions regarding budgeting, saving, investing, and planning for future financial goals.

This option directly relates to the core function of financial documentation, as it presents a comprehensive overview that aids in evaluating financial stability and performance. In contrast, other options focus on unrelated aspects such as social life, specific spending habits, or personal achievements, which do not encompass the fundamental objectives of financial statements.