An income statement is also known as what?

The income statement is commonly referred to as the Profit and Loss Statement. This financial statement provides a summary of the revenues, costs, and expenses incurred during a specific period, ultimately showing the net profit or loss of a business. By analyzing the profit and loss statement, stakeholders can gain insights into the company’s operational efficiency and profitability over time.

The terminology used in financial reporting often varies, but "Profit and Loss Statement" is a widely recognized synonym for the income statement due to its focus on the results of operations. This distinct name underscores the purpose of the statement, which is to outline how much money a company made (profit) versus how much it spent (loss).

The other options refer to different financial statements with unique purposes. The Statement of Changes typically relates to changes in equity, the Cash Flow Statement details the cash inflows and outflows, and the Balance Sheet outlines a company's financial position at a specific point in time. Each of these plays a distinct role in financial reporting, but none serve the same function as the income statement, hence the importance of recognizing "Profit and Loss Statement" as the correct terminology.