An income statement, also known as a profit and loss statement, is a financial document that summarizes a company's revenues, expenses, and profits or losses over a specific period, typically a quarter or fiscal year. It provides insights into the company's operational efficiency by detailing how revenue is transformed into net income. The income statement differs from a [[balance sheet]] in that it focuses on the company's performance over time rather than its financial position at a single point in time. While the income statement tracks profitability and operational results, the balance sheet provides a snapshot of the company's assets, liabilities, and shareholders' equity on a specific date, illustrating what the company owns and owes.