What is a profit and loss statement?

[niyati]

Hey everyone, I’ve been trying to get a better grasp of financial statements for my small business, and I keep coming across the term profit and loss statement.

 

[robertwilliam]

A profit and loss (P&L) statement, also known as an income statement, is a financial report that summarizes a company's revenues, expenses, and resulting profit or loss over a specific period, such as a month, quarter, or year. It essentially shows whether a business made money or lost money during that time.

 

[maria]

A Profit and Loss Statement (P&L), also known as an income statement, is a financial report that shows a company’s revenues, costs, and expenses over a specific period—usually monthly, quarterly, or annually. It’s used to calculate net profit or loss by subtracting expenses from income.