differences between balance sheet and the income statement

Explore the differences between a balance sheet and an income statement. While a balance sheet provides a snapshot of a company’s financial position at a specific point in time, showing assets, liabilities, and equity, an income statement details the company's financial performance over a period, outlining revenues, expenses, and profits. Understanding these key financial reports is crucial for accurate financial analysis and decision-making. Learn how each statement plays a vital role in evaluating a company’s financial health and performance.