Explain: Although the balance sheet can be thought of as a snapshot of a firms financial position at a point in time, the income state meant reports on operations over a period of tine

The balance sheet shows the firm's financial position on a specific date, for example, December 31, 2012. It shows each account balance at that particular point in time. For example, the cash account shown on the balance sheet would represent the cash the firm has on hand and in the bank on December 31, 2012. The income statement, on the other hand, reports on the firm's operations over a period of time, for example, over the last 12 months. It reports revenues and expenses that the firm has incurred over that particular time period. For example, the sales figures reported on the income statement for the period ending December 31, 2012, would represent the firm's sales over the period from January 1, 2012, through December 31, 2012, not just sales for December 31, 2012.