What is an income statement?

An income statement is a financial statement that shows a business's revenue, expenses, and profit or loss over a specific period. Also known as a profit and loss statement (P&L), it helps businesses evaluate financial performance and profitability.

Example: A monthly income statement may show $100,000 in revenue, $75,000 in expenses, and $25,000 in net income.

Related terms: Financial Statements, Revenue, Expenses, Net Income, Profit & Loss