Profit and Loss (P&L) Statement
What is Profit and Loss (P&L) Statement
A profit and loss statement (P&L), also known as an income statement or a statement of operations, is a type of financial report that summarizes the sales, costs, and profits or losses of a business during a specific time period. The P&L statement demonstrates a company’s capacity to produce revenue, control costs, and make a profit. It differs from the cash flow statement in that it is prepared using accounting concepts such as revenue recognition, matching, and accruals.