A financial statement that summarizes a company's revenues, expenses, and net income over a specific period, also known as a profit and loss statement.
The Income Statement, also known as the Profit and Loss Statement or Statement of Earnings, is a financial statement that summarizes a business's revenues, expenses, and net income (or loss) over a specific period. It provides a snapshot of the company's financial performance, showcasing the revenue generated from operations and the expenses incurred to generate that revenue. Small business owners use the Income Statement to assess profitability, identify trends, make informed business decisions, and demonstrate financial health to stakeholders and potential investors.