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Here we discuss about the Difference Between Income Statement and Balance Sheet. Ø Income Statement shows the financial performance of the company businesses while Balance Sheet shows financial Position of the company businesses. Ø It is the first step in Final Accounts while Statement of Financial Position is the second step.   Ø It is prepared for a particular period of time. For Example it is prepared for month, quarterly, half yearly and annually. While the Balance Sheet is prepared at a particular period of time. For Example, if it is prepared as on 31 st October 2015, then it shows the financial position of the company businesses as on 31 st October 2015. On 1 st November 2015, the financial position of company businesses will be different after recording Business Transactions . Ø All accounts shown in the former have no balances and are written off after passing Closing Entries , while in the later, Kinds of Accounts i.e.,...

Here we discuss about Income Statement Benefits - Balance Sheet Benefits. Previously we discuss about Income Statement Example - Balance Sheet Example . If you do not read this article then kindly read this one because without knowing this topic,  you can not  better understand benefits of these kinds of   Financial Statements . Firstly we discuss benefits of Income Statement and then Balance Sheet. For Income Statement Ø The Company can check the financial performance or net income of the business with this statement easily. Ø If the company businesses are earning profit shown in this statement, then the investors and big financial companies will surely invest in the company businesses. Ø True and Fair view of financial statements are presented to user of financial statement. Ø Any error in Trial Balance is corrected with Adjusting Entries and hence accounts present in this statement give true and fair view to the exte...