What is another name for the Income Statement?

The Income Statement is often referred to as the Profit and Loss Statement. This designation highlights its primary function, which is to report a company's revenues, costs, and expenses during a specific period, ultimately calculating the net profit or loss. This statement provides a clear picture of the financial performance of an organization over time, showing how much money the business made or lost.

In contrast, the Balance Sheet presents a snapshot of a company's assets, liabilities, and equity at a particular moment in time, serving a different purpose than the Income Statement. The Statement of Retained Earnings outlines changes in a company's retained earnings over a specific period but does not summarize income and expenses. Lastly, the Cash Flow Statement details the inflows and outflows of cash, focusing on liquidity rather than earnings. Each of these documents serves unique functions in financial reporting, but the Profit and Loss Statement synonymously captures the essence of the Income Statement's financial story.