A balance sheet represents a specific date, such as December 31, while an income statement covers a

Question:

A represents a specific date, such as ‘‘December 31,’’ while an income statement covers a period of time, such as ‘‘For the Year Ended December 31, 2010.’’ Why does this difference exist?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...