income statement is a financial statement that reflects the overall performance of a company during a specified period of time. It contains all profits and losses of the company to come up with net profit or loss. Two major components of any income statement are the income and the expense of the company.
balance sheet shows the current financial position of the company and is an integral part of the financial statements. It is also a sheet of papers that reflects the solvency of a company. The three most important elements of a balance sheet thus are assets, liabilities and equity.