profit-loss statement

A profit-loss statement, also known as an income statement, summarizes a company's revenues and expenses over a specific period, usually annually or quarterly. It shows how much money the business made (revenue) versus how much it spent (expenses). The difference between these two figures indicates the profit (if revenues exceed expenses) or loss (if expenses exceed revenues). This statement helps stakeholders, like investors and management, assess the company's financial performance and operational efficiency, making it a key tool for decision-making and strategic planning.