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In this video tutorial, James provides an introduction to the income statement, also known as the profit and loss statement or P&L. He explains that it is one of the three major financial statements in accounting, along with the balance sheet and cash flow statement. These reports collectively give a view of a business's financial health. James has already covered the balance sheet and cash flow statement in previous videos and is now addressing the income statement due to popular demand, particularly from subscriber Nili.