Profit and Loss Statement (P&L)

A Profit and Loss Statement (P&L), also called an income statement, is a financial report that shows a company's revenues, expenses, and profit or loss over a specific period, like a quarter or year. It starts with the money earned (sales), subtracts costs of goods sold and operating expenses, and ends with the net profit or loss. This document helps stakeholders understand how well the business is performing financially, indicating whether it’s making money or losing money during that period.