Part I. Financial Statements and Ratio Analysis and Forecasting
3.17: The Balance Sheet versus the Income Statement- A Summary
37 of 150 · 85 words
From Introduction to Financial Analysis by LibreTexts (Kenneth S. Bigel, Touro University), used under the CC BY 4.0 licence. Written for a general audience, not for NEPSE.
- Static (photograph)
- “As of” a specified date
- Numbers go up or down
- Numbers never turn back to zero
- “Current” means less than one year – versus “long-term”
- Statement of Revenues (Addition) and Expenses (Subtraction)
- Flow (moving picture)
- Cumulative
- Numbers only go up with time – except for net numbers (and adjustments)
- Then, the Income Statement’s numbers all revert to zero – the odometer is returned to zero.
- One may think of the income statement as a sub-part of the equity section of the balance sheet.
This chapter at LibreTexts (Kenneth S. Bigel, Touro University). Tables and text are reproduced; images, videos and quizzes are not.