Both involve a company’s finances, but their differences are significantReviewed by Gordon ScottFact checked by Pete RathburnBalance Sheet vs. Profit and Loss Statement: An OverviewThe balance sheet ...

To demonstrate, we can calculate a company's total expenses based on its total revenue from the income statement and its owners' equity from the balance sheet. Image source: Getty Images.

Learn More: Dividends and the Balance Sheet Why Do Shareholders Need Financial Statements? Financial statements are essential since they provide information about a company's revenue, expenses ...

Meanwhile, both companies may have liabilities that include taxes, business loans and payroll expenses. While balance sheets are the norm in the business world, they are not as frequently used by ...