Join Earl Kay Stice for an in-depth discussion in this video Differences between the balance sheet and income statement, part of Accounting Foundations.
As we know, there are three…primary financial statements,…the balance sheet,…the income statement,…and the statement of cash flows.…The balance sheet and the income statement…have been around for over 500 years.…The statement of cash flows has…only been around for 25 years,…so we'll leave that one to the side.…Let's just talk about a comparison between…the balance sheet and the income statement,…those stately, old financial statements…that have been our friends for over 500 years.…The balance sheet, listing of assets and liabilities.…As of right now, what do you have,…and what do you owe as of today?…So, you could theoretically do a…balance sheet any old day.…
Let's do it at the end of today,…let's do it at the end of the next day.…It's as of a point in time.…It's often spoken of as being a snapshot.…The balance sheet is a snapshot as of right now,…what do you have, and what do you owe?…The income statement, on the other hand,…tells you how much you made,…and if you think about that for a second,…you realize, ok, how much I made what, this week?…
- What is accounting?
- Working with balance sheets and income statements
- Determining the costs of products
- Performing break-even analysis
- Determining average and marginal tax rates
- Understanding tax deductions and credits
Skill Level Appropriate for all
1. Basics of Accounting
2. Financial Accounting
3. Managerial Accounting
4. Income Taxes
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