An income statement (or profit and loss statement) is a financial statement that summarizes a company’s revenues and expenses over a specific period of time. It generally shows the net income or loss for the period, and includes various components such as revenue, expenses, and gains or losses. Balance sheets are financial statements that summarize a company’s assets, liabilities, and shareholders’ equity at a particular point in time. The balance sheet provides an overview of a company’s financial health, which is important to investors, world markets, and creditors. For example, it shows the company’s available cash and the amount of debt it has taken on. Finally, a statement of retained earnings (or statement of owner’s equity) is a financial statement that summarizes changes to shareholders’ equity over a given period of time. This statement is important for understanding how money is contributed to or withdrawn from the company in question.