What is another name for a profit and loss statement?

The term "income statement" is another name for a profit and loss statement. This financial document provides a summary of revenues, costs, and expenses over a specific period, typically a fiscal quarter or year. The purpose of the income statement is to show the company's ability to generate profit by increasing revenue and reducing costs. It helps stakeholders understand the financial performance and profitability of the business.

The income statement is essential for assessing the operational efficiency of a business and is often used to make decisions related to investment, management, and strategic planning. The ability to compare income statements over different periods allows for trend analysis and performance evaluation.

While other options like the statement of cash flows and balance sheet provide valuable financial information, they serve different purposes. The statement of cash flows focuses on cash inflows and outflows, while the balance sheet provides a snapshot of a company’s assets, liabilities, and equity at a specific point in time. An enterprise budget is concerned with the projected financial performance of a particular business venture, not the overall profitability over a period.