Differences Between Income Statement And Balance Sheet

A balance sheet shows one point in time whereas the income statement shows a company s performance over some time usually a quarter or year.

Differences between income statement and balance sheet. In financial accounting a balance sheet is a summary of the financial balances of a company at a given point in time. They are important yet very different. An income statement is one of the financial statements of a company and shows the company s revenues and expenses during a particular period of time. Below you will find few points showing the difference between the income statement and balance sheet.

Both income statement as well as balance sheet are integral parts of a complete set of financial statements. Income statement is one of the financial statements of the company which provides the summary of all the revenues and the expenses over the time period in order to ascertain the profit or loss of the company whereas balance sheet is one of the financial statements of the company which presents the shareholders equity liabilities and the assets of the company at a particular point of time. Balance sheet vs income statement. The liabilities and assets of a business are detailed on a balance sheet however an income statement will outline revenue and expenditure.

An income statement and a balance sheet are two significant financial statements in accounting and both statements have their own individual purpose and identity. Income statement profit and loss account 1. While income statement reflects current year s performance of the company balance sheet contains information from the start of the business up to the financial year ended. Main differences between balance sheet and income statement.

Income statement and balance sheet differences. The income statement is like your child s report card.