What is another name for an income statement?

An income statement, often referred to as a profit and loss statement, is a financial report that summarizes a company's revenues and expenses over a specific period, ultimately determining the net profit or loss for that timeframe. This statement provides crucial insights into how effectively a company generates profit through its operations. It highlights key performance metrics such as gross profit, operating income, and net income, making it an essential tool for stakeholders to evaluate the financial health and performance of a business.

While other financial statements, such as the balance sheet or cash flow statement, serve different purposes—like providing a snapshot of assets, liabilities, and equity at a particular point in time or detailing cash inflows and outflows—the income statement specifically focuses on profitability. The terminology "profit and loss statement" is widely accepted and used interchangeably with "income statement" due to its emphasis on the net profit and loss generated by the company, which is crucial for assessing overall business success.