Balance Sheet
-In financial accounting, a balance sheet OR statement of financial position is a summary of financial balances of a sole proprietorship, a business partnership, OR a company.
-Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year.
-A balance sheet is often described as a "snapshot of a company's financial condition".
-Of four basic financial statements, the balance sheet is the only statement which applies to a single point in time of a business' calendar year.
Income Statement
-Income statement(also referred to as profit and loss statement (P&L) , revenue statement, earning statement OR operating statement) is a company's financial statement that indicates how to revenue(money received from sale of product and services before expenses are taken out) is transformed into net income(the result after all revenues and expenses have been accounted for also known as NET PROFIT).
-It displays the revenues recognized for a specific period and the const and expenses charged against these revenues include write-off(e.g.; depreciation) and taxes.
-The purpose of the income statement is to show managers and investors whether the company made or lost money during the period being reported.
-The most important thing to remember about an income statement is that it represents a period of time. This contrasts with balance sheet, which represents a single moment in time.
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