Which is true about an income statement and a balance sheet?
All of these answers are correct.
Unpaid items listed as expanses on the income statement may be on the balance sheet in a line item under liabilities.
An income statement shows financial condition over time while a balance sheet represents point in time.
Both statements are necessary to evaluate the financial condition of a company.
All of these answers are correct.
All of these answers are correct.
An income statement shows the financial performance of a company over a specific period of time, typically a year or a quarter. It lists revenues, expenses, and the resulting net income. Unpaid items listed as expenses on the income statement, such as outstanding bills or interest payments, may be reflected on the balance sheet as liabilities.
On the other hand, a balance sheet provides a snapshot of a company's financial position at a specific point in time, usually at the end of a reporting period. It shows the company's assets, liabilities, and shareholders' equity. It does not capture the company's financial performance over time like an income statement does.
Both the income statement and the balance sheet are important financial statements that provide essential information for evaluating the financial condition of a company.