Leaning Online

Both Income Statement And Balance Sheet are the important Steps of Accounting Cycle and both are considered as important financial statements of the business and presented to the Users of Financial Statements . Income Statement or Profit And Loss Account or Statement of Comprehensive Income shows the Financial Performance or N et Income / N et Profit or N et Loss of the business for a period while Balance Sheet or Statement of Financial Position shows Financial Position of the business on a particular time. The Closing Balances of all the Assets , Liabilities and Equity or Owner’s Equity are transferred to Balance Sheet While all the Expenses And Revenues are transferred to Income Statement a nd from where N et Income / N et Profit or Net Loss is tra nsferred to Liabilities & Equity Side Under Equity Section and added to the Equity or Owner’s Equity of the business. So, Income Statement shows the Profitable Activities...