Income Statement

An income statement is a financial report that shows a company's revenues, expenses, and profits over a specific period. It provides a clear picture of a company's profitability, highlighting how well it generates revenue and manages costs. The income statement is essential for every company because it helps stakeholders, such as investors, managers, and creditors, assess the financial health of the business, make informed decisions, and track performance over time. It also serves as a key tool for budgeting, forecasting, and strategic planning.