Glossary

The income statement, also known as the profit and loss (P&L) statement, is a financial report that shows a company's revenues, expenses, and net income or loss over a specific period (usually a quarter or a year).

It provides an overview of a company's financial performance, revealing its ability to generate profit by increasing revenue, reducing costs, or both. 💼📈

For example, an income statement might show that a company earned $50,000 in revenue, had $30,000 in expenses, and a net income of $20,000 ($50,000 - $30,000) for a given period.

Fun fact: The bottom line of the income statement, called net income or net profit, is the basis for the famous phrase "bottom line" when referring to a company's financial performance or final results. 💡💬