What does the income statement report on and contrast it to

Solution

An income statement is a financial statement that reports a company\'s financial performance over a specific accounting period. Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses through both operating and non-operating activities.

Balance sheet, also known as position statement displays the company\'s total assets, and how these assets are financed, through either debt or equity. Also, the net income from the income statement depending on whether profit or loss is carried to Balance sheet. It displays the financial position of the company.