The Basics of a Financial Statement – Part 2

Continuing with our introduction to the financial statement…

The financial statement has two parts: The income statement, which lists the income and expenses, and the balance sheet which lists the assets and liabilities. These will give you the big picture of how you are doing financially by showing you if your liabilities outweigh your assets or your expenses outpace your income. The picture below should help you visualize the income statement and balance sheet.

The income statement and the balance sheet

 

Gary

About Gary

I am retired, but not tired. I still want to be valuable to others. I know that others are valuable to me. After looking back on six decades, I have asked myself this question: “What do I believe?” My mind filled up. My heart started beating faster. My spirit soared. I post blogs to share what my mind is working on, what my heart believes would help others and, what my spirit is communicating to me. What do I believe, you ask? Decisions dictate your path In love, not hate In tolerance, not prejudice In health, not sickness In wealth, not poverty In kindness, rudeness In happiness, not sadness In encouragement, not discouragement In faith, not doubt In courage, not fear I have been and will be challenged in each one of these beliefs, but the biggest belief is to stay positive and not turn negative. This belief helps me maintain all of the others.

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