Which financial document shows money coming in and going out?

The Income Statement is a key financial document that outlines a company's revenues and expenses over a specific period, showcasing the money earned and spent. It is often referred to as the Profit and Loss Statement, and both terms are commonly used interchangeably. The Income Statement provides a snapshot of profitability by detailing the net income or loss within the period, making it integral for assessing an organization's financial performance.

While the Balance Sheet reflects the company's assets, liabilities, and equity at a given moment in time, it does not provide insights into cash flow dynamics. The Cash Flow Statement, on the other hand, specifically tracks the company's cash inflows and outflows, categorizing them into operating, investing, and financing activities. Although it is focused on cash transactions, which can include various income and expenses, it does not summarize revenues in the same structured way as the Income Statement. Understanding these nuances helps illustrate why the Income Statement is recognized for presenting the overall financial picture in terms of income and expenses within a given timeframe.