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 - Income Statement: Shows financial performance over a period.
 - Both statements are interconnected: Net income from the Income Statement affects Retained Earnings on the Balance Sheet.

-## Questions for Review
-
-1. How does the concept of equilibrium apply to a company's financial and economic aspects?
-2. Explain the relationship between assets, liabilities, and equity in the context of the balance sheet.
-3. How does depreciation affect both the balance sheet and income statement?
-
 ## References

 - Lecture notes, Date: Financial Statements Overview