What Is the Difference Between the Balance Sheet and Income Statement?
The balance sheet provides a snapshot of a company’s financial position at a specific point in time, detailing its assets, liabilities, and shareholders' equity, thus showing what the company owns and owes along with its net worth. In contrast, the income statement summarizes a company's financial performance over a specific period, highlighting revenue, expenses, and net income or loss, thereby illustrating how much money the company made and spent during that time frame.