difference between balance sheet and income statement

The difference between balance sheet and income statement lies in their purpose and the type of financial information they provide. The balance sheet offers a snapshot of a company’s financial position at a specific point in time, detailing assets, liabilities, and equity. It shows what a business owns and owes. On the other hand, the income statement outlines a company’s financial performance over a specific period, highlighting revenues, expenses, and profits or losses. While the balance sheet reflects the company's overall financial health, the income statement focuses on its profitability during a given period.