what is the difference between a p l statement and a balance sheet 
a company s p l statement shows its income expenditures and profitability over a period of time the balance sheet on the other hand provides a snapshot of its assets and liabilities on a certain date the balance sheet is typically presented as of the last day of the company s fiscal year investors use the balance sheet to understand the financial strength of the company comparing the amount and quality of its assets against its liabilities 