Similarities Of Income Statement And Balance Sheet

The balance sheet shows a company s total value while the income statement shows whether a company is generating a profit or a loss.
Similarities of income statement and balance sheet. Introduction from wikipedia in financial accounting a balance sheet is a summary of the financial balances of a company at a given point in time. If we now look at the income statement for the period we see the following. An income statement is one of the financial statements of a company and shows the company s revenues and. The explanation for the movement in equity lies in the relationship between balance sheet and income statement.
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. However to make the balance sheet balance there has to be a movement on equity of 300 which needs to be explained.