ncome Statement is another type of a financial statement.
It summarizes activities and events of one company which happened in a period of time.
Usually, there are monthly, quarterly, and annual income statement.
An income statement will show all revenues, all expenses, and net profits in detail.
On the contrary, a balance sheet show a company financial positions such as assets and debt at that precise date.
A balance sheet will show company's assets, liabilities and sharesholders equities.
Assuming no asset or liability changes, one take the net profit figures from an income statement and add it to the shareholders equities portion.For financial statement analysis purposes, having either one is useless.
It is essential to have both income statement and balance sheet together.