The balance sheet gives an overview of its assets, liabilities, and shareholder’s equity as of a particular date. Balance sheet:Ī balance sheet, also known as a statement of financial position, is a financial statement that provides a snapshot of a company’s financial position at a specific point in time. It’s one of the essential financial statements used by businesses to assess their financial performance and determine their profitability.
An income statement, also known as a profit and loss statement (P&L), is a financial statement that provides a summary of a company’s revenues, expenses, and profits (or losses) over a specific period of time, usually a quarter or a fiscal year.
