Why Are the Balance Sheet & Income Statement Considered Siamese Twins?

Answer Publicly traded companies publish balance sheets and income statements to seek positive press in financial news outlets and elicit support from investor quarters. Financial commentators often call ... Read More »

Top Q&A For: Why Are the Balance Sheet & Income Statement Co...

How to Prepare an Income Statement & Balance Sheet From Transaction Data?

Anyone who owns or manages a business should learn how to read and interpret a business financial statement. Owners also benefit from learning how to prepare basic financial documents, such as bala... Read More »

What Type of Data Is Used From the Balance Sheet to Create the Statement of Cash Flow?

Financial managers use various balance sheet accounts to prepare a statement of cash flow, also known as a liquidity report or cash flow statement. Before listing these accounts, it's important to ... Read More »

How to Calculate Net Income From a Balance Sheet?

A company's net income equals its total revenues minus its total expenses for an accounting period. A company reports its net income on its income statement, but net income is also connected to the... Read More »

How to Link Income Statements to a Balance Sheet?

An income statement shows a company's net income or loss during an accounting period. A balance sheet shows a company's financial position at the end of an accounting period. Net income on an incom... Read More »