Income Statement And Balance Sheet Difference

The balance sheet shows a company s total value while the income statement shows whether a company is generating a profit or a loss.

Income statement and balance sheet difference. On the other hand the balance sheet shows the position of the financial situation as a specific date. A balance sheet reports the company s assets liabilities and equity for a single point in time within a fiscal year. There are many differences between the balance sheet and income statement which is given below as following points. Income statement vs balance sheet an income statement and a balance sheet are two significant financial statements in accounting and both statements have their own individual purpose and identity.

Balance sheet is the statement of assets liabilities and the shareholder equity for a specific time period and the income statement is the statement of company s revenue and expenses for an accounting period. The nature of a balance sheet is also static given it is a snapshot of a point in time whereas an income statement is dynamic and tracks the money s movement. The balance sheet and income statement are both part of a suite of financial statements that tell the story of a business s history. 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.

The income statement reflects the results of income and expenses at pried of time. Balance sheet vs income statement 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. In terms of content and period covered a balance sheet is somewhat more detailed and specific than an income statement.

An income statement reports the company s revenue and expenses over a certain time frame.