difference in balance sheet and income statement

The balance sheet and income statement are both key financial statements, but they serve different purposes in assessing a company's financial health. The balance sheet provides a snapshot of a company's financial position at a specific point in time, listing its assets, liabilities, and equity. It shows what the company owns and owes. The income statement, on the other hand, summarizes a company’s revenue and expenses over a period of time, typically a quarter or year, to determine its profitability. While the balance sheet focuses on financial stability, the income statement highlights performance and operational efficiency.