The Basics of a Financial Statement – Part 2 « Health Now, Wealth Forever

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By Gary, on October 25th, 2011

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.