What is another name for an income statement?

The income statement is also known as the profit-and-loss statement. This financial report summarizes a company's revenues, costs, and expenses over a specific period, ultimately providing insight into the company's profitability. The primary purpose of the income statement is to display the financial performance of a business, highlighting how much money it earned and spent during the reporting period, which results in either a profit or a loss.

Using the term "profit-and-loss statement" focuses on the two key components of the document: profits (revenues exceeding expenses) and losses (expenses exceeding revenues). This nomenclature captures the essence of what the income statement aims to convey about a company's operational efficiency and financial health.

The other options refer to different financial statements with distinct purposes. The statement of financial position, often known as the balance sheet, outlines a company's assets, liabilities, and equity at a specific point in time. The cash flow statement details the cash inflows and outflows from operating, investing, and financing activities, providing insight into a company's liquidity. The balance sheet, instead of summarizing performance over time, reflects the company’s financial standing at a particular moment.