What type of financial document is a Profit and Loss statement?

A Profit and Loss statement, often referred to as an income statement, serves as a financial document that summarizes a company's revenues, costs, and expenses over a specific period. Its primary purpose is to measure the business's income and expenses, allowing stakeholders to assess the operational performance of the company. By providing a comprehensive overview of how much money is earned versus how much is spent, it highlights whether the company is operating at a profit or a loss during that time frame.

In contrast, the other types of financial documents mentioned have different focuses. An asset summary would primarily detail the resources owned by the business, whereas a record of cash flows emphasizes the movement of cash in and out of the business without detailing income and expenses in the context of profitability. A list of financial assets would catalog items like investments and property but would not give a complete picture of the business's overall financial health in terms of operations, which is the strength of a Profit and Loss statement.