Balance Sheet vs.

Income Statement
The balance sheet includes much detail or a full inventory of every asset and liability of a
company at any given time. On the other hand, the income statement lists revenue and expenses
for a given period of time. (Soft Schools)

In the balance sheet, a company shows its assets, liabilities, and shareholders' equity. The total
liabilities and shareholders' equity should equal that company's total assets. According to
Murphy, "Shareholders' equity is the difference between assets and liabilities or the money left
over for shareholders if all debts were repaid. Investors and creditors analyze the balance sheet to
see how a company's management is putting its resources to work." (Murphy, 2019)

In the balance sheet, values of items are measured in monetary terms at a particular point of time
rather than over a period of time. The company summarizes its financial results at a given date or
given point of time. That's why the balance sheet is prepared at a specific date, such as
"December 31, 2016".

On the other hand, the income statement is prepared over a particular period. The income
statement is called the profit and loss statement of a company, and that shows the revenues,
costs, and expenses over a period which might be a fiscal quarter or a fiscal year. The income
statement gives information to an investor whether a company is generating a profit or loss for
that period. (Murphy, 2019)

That's why the preparation of income statement considered over a period of time, not at a single
point of time, such as "For the Year Ended December 31, 2016."

Sources:

Murphy, Chris B. (Jun 25, 2019). How do the income statement and balance sheet differ?
Retrieved from https://www.investopedia.com/ask/answers/101314/what-difference-between-
income-statement-and-balance-sheet.asp

Soft Schools. Balance Sheet vs. Income Statement. Retrieved from

http://www.softschools.com/difference/balance_sheet_vs_income_statement/162/