Pete Rathburn is a copy editor and fact-checker with expertise in economics and personal ... an income statement, the full value of long-term investments or debts appears on the balance sheet.

with different interest rates, it's possible to calculate a company's overall interest rate from information found on its income statement and balance sheet. Image source: Getty Images.

These expenses are not initially recorded on a company’s income statement for the period when the money changes hands. Instead, prepaid expenses are first recorded on the balance sheet as an asset.

The others are the income statement and balance sheet. Together, they provide an overview of primary financial areas such as profit (income statement), assets vs. liabilities and owner's equity ...