3. Income statement he income statement, also known as the profit and loss (P&L) statement, provides a snapshot of the nancial performance of a company during a specified period of time. It reports a firm's gross income, xpenses, net income, and the income that is available for distribution to its preferred and common hareholders. he income statement is prepared using the generally accepted accounting principles (GAAP) that match the firm's revenues and expenses to the period in which they were incurred, not necessarily hen cash was received or paid. Investors and analysts use the information given in the income tatement and other financial statements and reports to evaluate the company's financial performance no condition