(P/L) Profit and Loss Statement

A profit and loss statement (P&L), also known as an income statement, is a financial statement that reports a company's revenues, expenses, and profits or losses over a specified period, serving as a financial report card to gauge the company's performance alongside the balance sheet and statement of cash flows.

A profit and loss statement (P&L), also known as an income statement, is a financial statement that reports a company's revenues, expenses, and profits or losses over a specified period. It's like a financial report card, showing how much money the company made and spent during that time.

The P&L statement is one of the three main financial statements, along with the balance sheet and statement of cash flows.

It lists all the money the company earned (revenue) and subtracts all the costs and expenses, such as rent, employee salaries, and supplies, to see if there's a profit or loss. This helps investors, managers, and others understand the company's financial health and performance.