balance sheet or income statement

The balance sheet and income statement are two key financial statements used to assess a company's financial health. The balance sheet provides a snapshot of a company's assets, liabilities, and equity at a specific point in time, offering insights into its financial position. The income statement, also known as the profit and loss statement, shows a company’s revenues, expenses, and profits over a period, highlighting its financial performance. Both are essential for decision-making but serve different purposes in financial analysis.