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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.
Income statement vs balance sheet items. The balance sheet and income statement highlight various aspects of your business s financial health. Financial statements include the balance sheet income statement and cash flow statement. In financial accounting the balance sheet and income statement are the two most important types of financial statements others being cash flow statement and the statement of retained earnings. A liability is something a person or company owes usually a sum of money.
As of a certain date. The balance sheet details a company s assets and liabilities at a certain period of time while the income statement details income and expenses over a period of time usually one year. An income statement also called a profit and loss account or p l. Income statement the balance sheet and income statement are both important financial statements that detail the financial accounting of a company.
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