What is the difference between a financial statement and a balance sheet?

@london_lueilwitz 

A financial statement is a broader term that refers to a set of financial reports prepared by a company to present its financial performance and position. It encompasses different reports such as the income statement, statement of cash flows, statement of changes in equity, and the balance sheet.

On the other hand, a balance sheet is a specific financial statement that provides a snapshot of a company's financial position at a given point in time. It presents a summary of a company's assets, liabilities, and shareholders' equity. The balance sheet shows what the company owns (assets), what it owes (liabilities), and the shareholders' investment in the company (equity) at a specific date.

In summary, the balance sheet is a component of the financial statements, which are a collection of reports that provide a comprehensive view of a company's financial performance and position.