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An income statement, also known as a profit and loss statement, is a financial document that shows how much profit or loss a company made over a specific period. It includes revenues, costs, and expenses incurred during that period.
The income statement is one of the three major financial statements used by businesses to evaluate their financial performance, alongside the balance sheet and cash flow statement. By analyzing an income statement, stakeholders can gain insights into a company's profitability, operational efficiency, and compare performance over time.
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