difference between an income statement and a balance sheet

An income statement and a balance sheet are two crucial financial documents, but they serve different purposes. The income statement shows a company’s revenues, expenses, and net income over a specific period, providing insight into its financial performance. In contrast, the balance sheet offers a snapshot of a company’s assets, liabilities, and equity at a specific point in time, reflecting its financial position. While the income statement focuses on profitability, the balance sheet shows the company's overall financial health and stability.