Profit and Loss (P&L) Statement

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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.

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