What is an income statement?
An income statement (also called profit and loss statement or P&L) is a financial statement that summarises a company’s revenues, expenses, gains and losses over a specific period — monthly, quarterly or annually — to arrive at net income or net loss.
The income statement is the most-watched financial statement for assessing business performance. Together with the balance sheet and cash flow statement, it forms the three core statements required in fundraising, audits and tax filings.