The financial statement that summarizes revenues and expenses for a period of time is the Income Statement or Profit and loss statement of the year.
The financial statement basically summarizes the income, expenses, and costs incurred during a specific period of time. Usually, it is for one fiscal year or quarter. The financial statement is helpful to find out a company's ability to enhance its profit either by increasing sales or by reducing the cost of goods. This statement provides the bottom or top line of the company. Accountants, analysts, bankers, and investors observe this statement carefully to find out the cash inflow and cash outflow of any business organization. This statement answers a simple question like
Financial statement is also used by companies to analyze how efficiently expenses are incurred and what is their impact on sales. Every investor is curious to look into financial statements before investing in that business organization.
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