The income statement is the first of the three major financial statements. The income statement measures financial performance over a specific accounting period, typically over a fiscal quarter or year. It summarizes how a business incurs its revenues and expenses through both operating and non-operating activities. It shows net profit or loss incurred during the first 3 years of operation
The Balance Sheet is the second of the three major financial statements. It provides a “snapshot” at a specific point in time that summarizes a company’s assets, liabilities and shareholders’ equity. These three segments show what the business owns and owes, as well as the amount invested by the shareholders.