What is Income statement and balance sheet

Question

Accepted Answer

Income statement shows a company's financial performance over a period of time, while balance sheet shows its financial position at a specific point in time.

Income statement includes revenues, expenses, and net income for a specific period.
Balance sheet includes assets, liabilities, and equity at a specific point in time.
Income statement helps assess profitability, while balance sheet helps assess financial health.
Example: Income statement - sales revenue, operating expenses, net income. Balance sheet - cash, accounts receivable, debt.
Example: Income statement for the year ended December 31, 2020. Balance sheet as of December 31, 2020.

Accepted Answer

balance sheet reports what a company owns at a specific date. An income statement reports how a company performed during a specific period

What is Income statement and balance sheet

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