Which financial statement shows a company's net profit or loss over a specific period, often a quarter or year?

The income statement is the financial statement that accurately portrays a company's net profit or loss over a specified period, typically a quarter or a year. It details the revenues earned and the expenses incurred during that timeframe, allowing stakeholders to assess the company's financial performance. The bottom line of the income statement shows either a profit, where revenues exceed expenses, or a loss, where expenses surpass revenues.

This statement is crucial for both internal and external stakeholders as it provides insights into the company's operational efficiency, profitability, and overall financial health. Investors and management alike rely on the income statement to make informed decisions regarding investments, budgeting, and financial forecasting.