The Balance shows a business’s financial situation at a moment in time. It is a statement of assets, liabilities and capital of a business.
An Income Statement (P&L) shows the net profit or loss for the previous period (month, year to date, or year). The Balance Sheet is different. The performance of the business since inception is accumulated on the Balance Sheet.
The Balance Sheet has three sections – Assets, Liabilities and Owners Equity.
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