Welcome to CS Students' Online Club. Our MISSION: "To create a online network of budding governance professionals". Our VISION: "To be a leading network of governance professionals, providing scope for knowledge and career development".

CSoC Members Count:
38,252
Latest topics
» Past Question Papers of CS Executive / Professional / Foundation Exam Upto December 2016 Session
Wed 1 Feb 2017 - 0:11 by rchgiri

» Direct & Indirect Tax Laws Updates & Select Cases for CS Executive/Professional December 2016 Examination
Wed 11 Jan 2017 - 16:59 by rchgiri

» Financial Treasury and Forex Management>Past Questions of 60 marks>CS Professional
Thu 5 Jan 2017 - 9:45 by rchgiri

» CS EP NS P2 Cost & Management Accounting > MCQ
Sat 8 Oct 2016 - 17:57 by rchgiri

» CS Professional / Executive Programme Guideline Answers upto June 2016 Exam
Sun 28 Aug 2016 - 16:49 by rchgiri

» Tips on "How To Face An Interview & Career Planning"
Tue 23 Aug 2016 - 9:55 by rchgiri

» SEBI Act, Rules, Regulations, etc.
Mon 1 Aug 2016 - 14:48 by rchgiri

» CS Dinesh Chandra Arora, New Secretary of ICSI
Thu 21 Jul 2016 - 15:34 by Club CEO

» Online Learning of CS Executive coaching classes
Wed 11 May 2016 - 23:11 by raviesm

» Service tax Reverse Charge Mechanism.
Mon 15 Feb 2016 - 21:51 by siva004

» Service tax credit on step ladder repair
Mon 15 Feb 2016 - 21:37 by siva004

» CS Mamta Binani elected as New President of ICSI & CS Shyam Agarwal elected as New Vice-President of ICSI for 2015-16
Tue 19 Jan 2016 - 12:08 by Club CEO

» CS PP Old Syllabus: P4: CRI: Questions & Answers >> Correct or Incorrect:
Sun 13 Dec 2015 - 20:28 by rchgiri

» The Companies Act, 2013: The Rules made thereunder, Circulars & Notifications Issued by MCA
Sat 5 Dec 2015 - 12:42 by rchgiri

» New CSoC Face Portal
Thu 8 Oct 2015 - 9:01 by Club CEO

» CS Trainees / Jobs
Wed 23 Sep 2015 - 14:36 by rchgiri

» General Notice to Club Members & Well-Wishers
Tue 8 Sep 2015 - 15:36 by Club CEO

» online coaching for cs professional old syllabus
Sun 6 Sep 2015 - 13:41 by rchgiri

» Automatic Switchover To Professional (New Syllabus 2012) From December, 2016 Session
Thu 3 Sep 2015 - 15:49 by rchgiri

» Can anybody tell Main object clause for Manufacture of machinery of Polyurethanes industry.
Wed 2 Sep 2015 - 14:59 by parul5986

Top posters
rchgiri (1527)
 
Club CEO (1158)
 
praveen999 (691)
 
Soundharya (591)
 
mione (424)
 
lalitha.purohit (283)
 
j.padiya (277)
 
Preetpal Singh (219)
 
Aswathy (193)
 
SANJAY SHARMA (176)
 


You are not connected. Please login or register

View previous topic View next topic Go down  Message [Page 1 of 1]

nshp17

avatar
DIFFRANCE BETWEEN
BALANCE SHEET AND INCOME STATEMENT


SOURCE BY - INTERNET


Balance sheet and income statement are part of the
financial statements of a company for the perusal of all the stakeholders.
Though both, income statement and balance sheet, have similarities as well
as differences, they are used side by side by those who are desirous of
understanding the financial health of the company for investment purposes. Many
feel that they are same but this article will highlight the differences between
these two financial statements to remove these doubts.



What is Balance Sheet?


Also referred to as a statement of financial
position, balance sheet shows the current financial position of the
company and is an integral part of the financial statements. It includes all
the assets and liabilities of a company in a sequential order which means that
the most liquid assets are listed first and the most pressing liabilities are
first before smaller ones. It is also a sheet of papers that reflects the
solvency of a company. The three most important elements of a balance sheet
thus are assets, liabilities and equity.



Assets are financial resources a
company has as a result of its past transactions. These assets translate into
cash flow into the company that can be used for business purposes. Some
examples of assets are cash, plant and machinery, furniture, marketable
securities, patents, copyrights and account receivables.



Liabilities are the opposite of
assets and are obligations of the company that eventually result in a cash
outflow. Some examples of liabilities are notes and bonds payable, income tax,
interest payable to lenders, dividends payable and warranty liability.



Equity is that part of the assets that
are claimed by the owner. It is the net result of assets after all liabilities
have been met. Examples of equity are capital, ordinary and preference share
capital, appropriated and unappropriated retained earnings etc.



What is Income Statement?


Also called the profit and loss statement or
comprehensive income statement is a financial statement that reflects the
overall performance of a company during a specified period of time. It contains
all profits and losses of the company to come up with net profit or loss. Two
major components of any income statement are the income and the expense of the
company.



Income is defined as increase of
economic benefits in a given period of time in the form of inflow of assets or
a decrease in liability. All revenues and gains are classified in the income
head of a income statement.



Expense, on the other hand are a
decrease in economic benefits in the form of cash outflow or an increase in the
liabilities of the company. Some examples of expenses are cost of sales, sale
promotion, advertising expenses, income tax expense, stationary and potage
expense etc.




Balance Sheet vs Income Statement


Both income statement as well as balance sheet are integral parts of a
complete set of financial statements.



While income statement reflects current year’s performance of the company,
balance sheet contains information from the start of the business up to the
financial year ended



Income statement tells current profit and loss whereas balance sheet reflects
the financial health of the company telling its overall assets and
liabilities



2 Reply on Tue 2 Aug 2011 - 9:30

Sumit87


CSoC Smart User
CSoC Smart User
Thank you.Its Helpful

kkomal


thank you

Preetpal Singh

avatar
CSoC Well-Wisher
CSoC Well-Wisher
Nice Cool

Sponsored content


View previous topic View next topic Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum