Question

Explain the following statement: Although the balance sheet can be thought of as a snapshot of a firm’s financial position at a point in time, the income statement reports on operations over a period of time.

Answer 1

Answer:

The balance sheet shows the financial position on a specific date. It provides a snapshot of the asset, liabilities and equity position of the company.

whereas in case of income statement it shows the revenues and expenditure incurred during a period of time.

Explanation: