Balance Sheet vs. Income Statement

The Balance Sheet shows a snapshot of a company's assets, liabilities, and stockholders' equity accounts as of a specific point in time, whereas the Income Statement shows the company's revenues and expenses (and hence, profit or loss) for a specific period of time. The revenues and expenses on the Income Statement are only tracked for a specific period, and must be zeroed out (and transferred to the Balance Sheet account Retained Earnings) at the end of the period. Thus, the profit or loss from the Income Statement ultimately affects the Retained Earnings on the Balance Sheet. Investors use the Income Statement to evaluate a company's performance over a specific period, whereas the Balance Sheet is more used to evaluate the company's liquidity (particularly if the company is at risk for bankruptcy).—
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[MyFinancialFocus]

My favorite is the cash flow statement. $$$

[Itsmemavie]

im going to watch this again and again until i totally understand, but really i did understand some new things after watching it. so thank you sir!

[whoaMarshy]

on a completely different note from this topic, you sound exactly like Dax Sheppard. Especially starting at 3:00