Profit And Loss ( P&L )

Profit and Loss (P&L)

The term profit and loss (P&L) statement refer to a financial statement that summarizes revenue, costs, and expenses incurred during a specified period, usually a quarter or financial year. These records provide information about a company's ability or inability to generate profit from increasing revenue, reducing costs, or both. These statements are often presented on a cash or accrual basis.

How Profit and Loss (P&L) Statements Work

The P&L statement is one of three financial statements that each public company issues on a quarterly and annual basis, along with a balance sheet and cash flow statement. It is often the most popular and common financial statement in a business plan because it shows how much profit or loss was generated by a business.

statement of profit and loss

statement of operations

statement of financial results or income

earnings statement

expense statement