What is another term for a Profit and Loss statement?

The term "Income Statement" is synonymous with "Profit and Loss statement." This document plays a crucial role in financial reporting as it summarizes a company’s revenues, costs, and expenses over a specific period, ultimately showing the net profit or loss incurred. The use of the term "Income Statement" emphasizes the focus on the income generated and the expenses deducted to arrive at the profit figure.

In contrast, the other terms refer to different financial documents. A Cash Flow Statement tracks the actual cash generated and spent during a period, rather than profitability. The Balance Sheet presents a snapshot of a company’s assets, liabilities, and equity at a specific point in time, providing insights into the company’s financial condition rather than its performance over a period. Lastly, a Financial Position Statement is not a commonly used term; it is generally not regarded as an alternative to “Profit and Loss statement.” The terminology is essential for clarity in financial communication and understanding a company's financial health.