Profit And Loss Statement, also known as the Income Statement, is a financial document used to report a company’s profitability over a period of time. It serves to provide an overview of the company’s performance by showing how much money was earned through revenue and how much money was spent on expenses. The net profit or loss calculated at the end of the statement indicates whether the company made a profit or incurred a loss during that period. It provides an accurate picture of a business’ overall financial health and well-being, which helps companies identify areas for improvement.