MANAGEMENT

Detailed explanation-1: -The income statement provides a financial summary of a company’s operating results during a specified period. Although they are prepared annually for reporting purposes, they are generally computed monthly by management and quarterly for tax purposes.

Detailed explanation-2: -The Balance Sheet shows the financial position (condition) of the firm at a given point of time. It provides a snapshot that may be regarded as a static picture. “Balance sheet is a summary of a firm’s financial position on a given date that shows Total assets = Total liabilities + Owner’s equity.”

Detailed explanation-3: -A balance sheet provides a snapshot of a firm’s financial position at a specific point in time, while an income statement – also known as a profit and loss statement – measures performance over a period of time. Accounting software helps to manage both of these financial statements.

Detailed explanation-4: -An income statement is one of the three major financial statements, along with the balance sheet and the cash flow statement, that report a company’s financial performance over a specific accounting period. The income statement focuses on the revenue, expenses, gains, and losses of a company during a particular period.

Detailed explanation-5: -Overview: The balance sheet-also called the Statement of Financial Position-serves as a snapshot, providing the most comprehensive picture of an organization’s financial situation. It reports on an organization’s assets (what is owned) and liabilities (what is owed).