Informative Brochure
By David Kim
Balance Sheet
The balance sheet is a financial statement that shows what the business is worth at one point in time. A standard company balance sheet has three parts, assets, liabilities and ownership equity or capital.
Balance sheet accounts do not show results, even if one can infer this by comparing the balance of accounts from different times.
Income Statement
A financial statement that measures a company's financial performance over a specific accounting period. Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses through both operating and non-operating activities. It also shows the net profit or loss incurred over a specific accounting period, typically over a fiscal quarter or year. Also known as the "profit and loss statement" or "statement of revenue and expense."