Difference Between Balance Sheet And Income Statement With Similarities
Both Income Statement And Balance Sheet have great importance in analyzing the financial information of enterprise for different accounting periods whether they relate to the past, current or future accounting periods. Here, we will study the main difference exists between Income Statement and Balance Sheet in accounting. 1. Income Statement shows financial performance or N et Profit / N et Income for the accounting period while Balance Sheet shows financial position of the business on a particular time. Also Check Out, “ Relationship Between Income Statement And Balance Sheet ” 2. Income Statement proceeds the balance sheet i.e., it prepares before the preparation of Balance Sheet. 3. Income Statement is prepared for the accounting period and shows the financial performance for current period only while Balance Sheet shows the financial performance only on particular time i.e. on 31 st December what is the balances of Assets , Liabil...