MANAGEMENT

Detailed explanation-1: -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.

Detailed explanation-2: -A balance sheet reports financial information on a specific date and includes the assets, liabilities, and owner’s equity. A balance sheet reports information about the elements of the accounting equation.

Detailed explanation-3: -Balance Sheet Basics Your balance sheet (sometimes called a statement of financial position) provides a snapshot of your practice’s financial status at a particular point in time. This financial statement details your assets, liabilities and equity, as of a particular date.

Detailed explanation-4: -It’s called a balance sheet because both sides of the equation must balance: assets equal liabilities plus stockholders’ equity. The balance sheet displays: The portion of those assets financed with debt (liability) The portion of equity (retained earnings and stock shares)