profit and loss statement

Primary tabs

See income statement.

Also known as P&L. A financial statement showing a business’s gross income and expenses, used to determine the net profit or loss for a specific period. It is one of three financial statements that every public company issues quarterly and annually, along with the balance sheet and the cash flow statement. Like the cash flow statement, the profit and loss statement reflects a company’s financial performance over a period, as opposed to their financial position in a single moment, as with the balance sheet. Investopedia. A profit and loss statement starts by finding total sales and revenue, and subtracts the various different costs from the revenue. Corporate Finance Institution. Some of the costs may be straightforward such as the cost of the goods sold. However, some challenges in preparing a profit and loss statement may be pairing operational, administrative, and overhead costs to a particular period. Freshbooks.

[Last updated in September of 2020 by the Wex Definitions Team]