An income statement is a financial document that summarizes a company's revenues and expenses over a specific period, usually a quarter or a year. It shows how much money the company earned from its operations and how much it spent, ultimately revealing the net profit or loss. This statement is essential for assessing a company's financial performance. The income statement typically includes key components such as revenues, cost of goods sold, and operating expenses. By analyzing these figures, investors and management can make informed decisions about the company's profitability and operational efficiency.