profit and loss statement

A Profit and Loss Statement (P&L) summarizes a company's revenues, costs, and expenses over a specific period, typically a quarter or year. It shows how much money the business earned (revenues) and how much it spent (expenses) to determine its profit or loss. If the revenues exceed expenses, the company has a profit; if expenses exceed revenues, it incurs a loss. The P&L is crucial for understanding a company's financial performance and helps investors, management, and stakeholders make informed decisions about its operations and future strategies.