Answer to Question #190379 in Management for Ys Gabin khan

Question

What us income statement and balance sheet explain with examples

Answer 1

Answer

An income statement is a financial statement that illustrates the company’s income and expenditures. For instance, it shows whether a company is making profit or loss for a given period, thus helping a business understand its financial health. 

A balance sheet is a financial statement that displays the company’s total assets and explains how these assets are financed through either debt or equity. For instance, the fundamental equation that the balance sheet is based on is as follows; Assets=Liabilities + equity.