Income Statement (Revenues − Expenses): Reports operational performance over time. Only admits Revenues and Operating Expenses.
Balance Sheet (Assets = Liabilities + Equity): A snapshot at a specific point in time. Admits Assets, Contra-Assets, Liabilities, and Owner Equity.
Impostor Warning:Dividends belong on the Retained Earnings statement—never the Income Statement! Accumulated Depreciation is a Balance Sheet contra-asset.