Question 2:

Financial Analysis has great importance to various accounting US on various matters. Income Statements, Balance Sheets and other finance data that provides information about expenses and sources of income, profit, loss and helps in assessing the financial position of a business. In light of the above, discuss the following, enriched with illustrative examples.

1. Explain the differences between Balance Sheet and Income Statement, in terms of the following items:

a. Concepts (Define two statement). [10 marks]

b. Items in each statement. [15 marks]

c. Objective for each one. [15 marks]

2. Complete the worksheet showing applied example about each statement that illustrates the comparison and differences. [20 marks]