What is another name for an income statement?

An income statement is commonly referred to as a Profit and Loss Statement (P&L). This term emphasizes the statement's primary function, which is to summarize a company's revenues and expenses over a specific period, illustrating the profit or loss generated during that time.

The purpose of an income statement is to provide stakeholders with a clear view of the company's financial performance, showing how much money the business made (revenue) and how much it spent (expenses). The bottom line of this statement reveals whether the company made a profit or incurred a loss, which is crucial information for management, investors, and lenders.

While the term "Financial Statement" broadly encompasses the income statement, balance sheet, and cash flow statement, it does not provide the specific focus that the term "Profit and Loss Statement" does. The cash flow statement, on the other hand, highlights the inflows and outflows of cash within the organization and does not summarize profitability. Lastly, an equity statement typically reflects changes in equity over a period and does not serve the same purpose as an income statement. Thus, "Profit and Loss Statement" accurately captures the essence and function of an income statement.