What is balance sheet and profit and loss

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Balance sheet shows assets, liabilities, and equity at a specific point in time. Profit and loss shows revenues, expenses, and net income over a period.

Balance sheet is a financial statement that shows a company's assets, liabilities, and equity at a specific point in time.
Profit and loss statement (P&L) is a financial statement that shows a company's revenues, expenses, and net income over a specific period.
Balance sheet helps assess a company's financial health and liquidity.
Profit and loss statement helps evaluate a company's profitability and performance.
Example: Balance sheet may show assets like cash and inventory, liabilities like loans, and equity like retained earnings.
Example: Profit and loss statement may show revenues from sales, expenses like salaries and utilities, and net income after deducting expenses from revenues.

What is balance sheet and profit and loss

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