An income statement, also known as a profit and loss statement, is a financial statement that shows a company's revenues, expenses, and net income over a specific period of time, typically a quarter or a year. It provides a summary of a company's financial performance and is used by investors, creditors, and analysts to evaluate the profitability of a business. The income statement is divided into three main sections: revenues, expenses, and net income. Revenues represent the total amount of money earned from selling goods or services, while expenses are the costs incurred to generate those revenues. Net income is the difference between revenues and expenses and represents the company's profit or loss for the period.