What is difference between balance sheet and income statement?

Assets, liabilities and equity.

Helps in deriving liquidity of a firm.

Prepared in last day of accounting period.

Accounts transferred are not closed

Balance will become opening balance for next period.

Current ratio, quick ratio, cash ratio, receivable turnover ratio, inventory turnover ratio, payable turnover ratio, return on assets are calculated.

It is also named as statement of financial position

It has narrow scope.

Revenues and expenses.

Helps to take decisions in any operational or financial issues.

Prepared for accounting period.

Accounts transferred are closed.

Balance is transferred to capital account in balance sheet.

Gross margin, operating margin, net margin, operating leverage and financial leverage are calculated.

It is also named as profit and loss account.

It has wide scope.