Profit and Loss Statement (Income Statement)
The term used for the financial report that provides a summary of a company's performance by reviewing revenues, costs, and expenses during a specific period is called the Profit and Loss Statement, also known as the Income Statement.

Importance of the Profit and Loss Statement
The Profit and Loss Statement is a crucial financial document that helps stakeholders evaluate the profitability and financial health of a company. It provides a comprehensive overview of a company's revenues, costs, and expenses over a specific period, typically a month, quarter, or year.

Components of the Profit and Loss Statement
The Profit and Loss Statement consists of several key components, including:

1. Revenues: This section includes all the income generated by the company during the specified period. It typically includes sales revenue, service revenue, interest income, and other operating income.

2. Cost of Goods Sold (COGS): COGS refers to the direct costs associated with producing or delivering goods or services. It includes the cost of raw materials, direct labor, and manufacturing overhead.

3. Gross Profit: Gross profit is calculated by subtracting the COGS from the total revenues. It represents the profit generated by the company's core operations before considering other expenses.

4. Operating Expenses: This section includes all the expenses incurred in the day-to-day operations of the business. It typically includes salaries, rent, utilities, marketing expenses, and other general and administrative expenses.

5. Operating Income: Operating income is calculated by subtracting the operating expenses from the gross profit. It represents the profit generated from the company's core operations.

6. Other Income and Expenses: This section includes any additional income or expenses that are not directly related to the company's core operations. It may include interest income, interest expense, gains or losses from the sale of assets, and other non-operating items.

7. Net Income: Net income is the final figure on the Profit and Loss Statement and represents the company's overall profitability. It is calculated by subtracting the total expenses, including operating expenses and other income/expenses, from the gross profit.

Conclusion
The Profit and Loss Statement is an essential financial report that provides a summary of a company's performance by reviewing its revenues, costs, and expenses during a specific period. It helps stakeholders assess the profitability and financial health of the company and make informed decisions.