Question

are financial statements that show the revenue, or sales, and expenses of a business for a specific time period and determine if a business has a profit or a loss.

Answer 1

Those are called the income statement (also known as the profit and loss statement, P&L, statement of earnings, or statement of operations).

What it shows, concisely:
- Period covered: a specific time frame (month, quarter, year).
- Main items: revenues (sales) and expenses (cost of goods sold, operating expenses, interest, taxes, etc.).
- Result: gross profit, operating income, and net income (profit or loss).

Quick formula:
Net income = Revenues – Expenses (including COGS, operating expenses, interest and taxes)

Notes:
- It reports performance over a period (vs. the balance sheet, which is a point-in-time snapshot).
- It may be prepared on an accrual or cash basis; accrual is typical under GAAP/IFRS.
- Related statements: balance sheet and cash flow statement (which shows cash movements).