An income statement is a snapshot of what a company owns (called assets) and what it owes (called liabilities) at a point in time.

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An income statement shows a company's revenues and expenses over a period of time, not its assets and liabilities. The balance sheet is the financial statement that provides a snapshot of what a company owns (assets) and owes (liabilities) at a specific point in time.

An Income Statement Is a Snapshot of What a Company