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Income Statement is another type of a financial statement. It summarizes activities and events of one company which happened in a period of time. Usually, there are monthly, quarterly, and annual income statement. An income statement will show all revenues, all expenses, and net profits in detail.

On the contrary, a balance sheet show a company financial positions such as assets and debt at that precise date. A balance sheet will show company's assets, liabilities and sharesholders equities.

Assuming no asset or liability changes, one take the net profit figures from an income statement and add it to the shareholders equities portion.

For financial statement analysis purposes, having either one is useless. It is essential to have both income statement and balance sheet together.

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Additional Answer

Balance sheet indicate what the firm owns and how these assets are financed in the form of liabilities or ownership interest. While income statement purports to show the profitability of the firm, the balance sheet declineates the firm's holdings and obligations. Together, these statements are intended to answer two questions: How much did the firm make or lose, and what is na measure ot its worth?
An income statement (profit and loss statement) summarises the company's income and expenditure coming down the the profit or loss for the period. This is a statement over a certain period of time, for example a month or a year. A balance sheet summarises the assets and liabilities of the business and is a statement at one period in time

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Related Questions

How income statement affect balancesheet?

Income statement and balance sheet are both related to each other as transactions effect income statement and balance sheet as well and net income or loss from income statement is also part of balance sheet.


Income statement and balance sheet?

Income statement shows the income and expenses related to one fiscal year while balance sheet shows the overall performance from inception to till date.


Are the income a balance sheet account?

Income is an income statement account and shown in income statement and not a balance sheet account.


Are accounts payable on the income statement and balance sheet?

yes accounts are payable on the income statement and balance sheet.


Is interest on fixed deposit located on income statement or balance sheet?

both.. balance sheet under liquid asset..income statement under inflow/income..


Where does interest go on balance sheet?

Interest is part of income statement and shown in income statement and not part of balance sheet.


Are exploration expenses located on a balance sheet or income statement?

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Where does an escrow payable appear on a balance sheet or a income statement?

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Does mortgage payable post to the income statement or balance sheet?

Mortgage payable is liability so it is part of balance sheet and not part of income statement.


Is net income recorded on the worksheet in the Income Statement Debit column and the Balance Sheet Credit column?

debit column of the income statement and the credit column of the balance sheet.


Is earnings per share found on income statement or balance sheet?

Earning per share information is shown in income statement and not shown in balance sheet of business.


What financial statement does merchandise inventory at end of period go on?

Closing merchandise inventory belongs on both the income statement and the balance sheet. On the income statement, it is included under Cost of Goods Sold; on the balance sheet it is categorised under Current Assets.