Income Statement

An income statement is a financial report that summarizes a company's revenues and expenses over a specific period, typically a year or a quarter. It shows how much money the company earned (revenues) and all the costs it incurred to run its operations (expenses). The difference between these two figures results in net income or loss, which indicates whether the company made a profit or suffered a loss during that time. Essentially, the income statement provides a clear picture of a company's financial performance and profitability, helping investors and stakeholders assess its economic health.