Income Statement vs. Balance Sheet



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I could use a concise definition of the difference between a Balance Sheet and an Income Statement.

2 Answer(s)


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An income statement gives you a summary of the company's operating performance.

A balance sheet gives you a summary of a company's assets and liabilities.

Think of it this way. If you micro manage your personal finances, then you keep track of your salary and monthly expenses - thats your income statement.

Separately you also keep track of things like your car, your house, your laptop, your mortgage etc - thats your balance sheet.

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income statement tells that how much revenue company earned and how much expenses occurred in a specific time period.
whereas balance sheet shows total asset and liabilities of company at given point of time..