An Income Statement is a financial document that summarizes a company's revenues and expenses over a specific period, typically a fiscal quarter or year. It provides insights into the company's profitability by showing how much money was earned and spent, ultimately revealing the net income or loss. This statement is crucial for stakeholders, including investors and management, as it helps assess the company's financial performance. By analyzing the Income Statement, one can understand trends in revenue generation and cost management, which are essential for making informed business decisions.