A Profit and Loss Report, also known as an income statement, is a financial document that summarizes a company's revenues and expenses over a specific period. It helps businesses understand their financial performance by showing how much money they made (profit) or lost (loss) during that time. This report typically includes key components such as total revenue, cost of goods sold, and operating expenses. By analyzing these figures, business owners can make informed decisions about budgeting, spending, and future growth strategies.