Final answer:
The income statement differs from the balance sheet in that it measures a company's financial performance, specifically revenues and expenses, over a certain period, rather than providing a snapshot of the company's net worth at a specific time.
Step-by-step explanation:
Unlike the balance sheet, the income statement measures the performance of a company over a specific period of time. This financial statement captures a company's revenues and expenses to illustrate how the business has performed in terms of profit or loss. The balance sheet, in contrast, is a snapshot of the company's financial position at a single point in time, showing its assets, liabilities, and shareholders' equity, which together provide insights into the company's net worth or financial health. Thus, the key difference is that the income statement reflects income and expenses, revealing the company's operational success, whereas the balance sheet is a representation of accumulated wealth and financial position.