Re: Income from Income Statement and Current Earnings from balance sheet

Remember, a balance sheet is a snapshot in time. An income statement represents activity over a defined period. So, as long as you don't do period-end allocations of current earnings to, for example, the owner's capital accounts; then the two numbers should be the same IF the income statement period is over the ENTIRE timeframe of activity of the business (from inception through present day). As long as the income statement is for a shorter period than the entire history of the business, theses numbers will not be the same. The balance sheet reflect the entire accumulated history of accounting activity for the business. The income statement shows what that activity was over a specified period.

On Sun, Oct 11, 2009 at 7:04 AM, david <..hidden..> wrote:

Hi...

My Accountant believes that these two figures shoudl be the same, but on my LSMB accounts they aren't.

I said that I would ask on this list under what circumstances they could be different.

Can anyone help?

regards,

David.

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