In contrast, the balance sheet aggregates multiple accounts, summing up the number of assets, liabilities, and shareholder equity in the accounting records at a specific time.

Accounting Equation for Profit & Loss Statements. The accounting equation, assets equals liabilities plus stockholders' equity, is the foundation of the balance sheet.

The income statement summarizes the total revenue, expenses and profit or loss incurred during the period covered. A balance sheet does not involve time periods similar to income statements.

The profit and loss (P&L) statement is a financial statement that summarizes a company's revenues, costs, and expenses incurred during a specified period.

P&L Statement vs. Balance Sheet. A profit and loss statement shows the company’s income, expenditures and profitability for the period. The balance sheet shows current assets and liabilities at the ...

A profit and loss account (P&L) is a statement of sales income and expenditure over a specified period, and any profits or losses made. Essentially, the profit or loss is the difference between ...

What Startups need to know about Financial Statements(BalanceSheet, Profit & Loss Statement, Cash Flow Statement andmore) Alok Patnia 61 Stories Thursday February 16, 2012 , 4 min Read ...

The cash-flow statement takes net income and adjusts for non-cash expenses on the profit and loss statement, as well as other cash expenditures that don't fall on the profit and loss statement, to ...

Balance sheets are not meant to show earnings the way that a profit and loss statement (P&L) does. Instead, balance sheets are meant to balance out, typically by following the accounting equation ...

The balance sheet takes your business's assets (e.g., inventory, equipment and accounts receivable), liabilities (e.g., accounts payable or taxes owed) and equity into account. Cash flow statement .

Learn what an income statement is, its key components (revenue, expenses, profit), and why it's important for financial analysis.