What Is Profit and Loss Statement?
A financial report summarizing revenues, costs, and expenses over a specific period.
Detailed Explanation
Also called an income statement or P&L. It shows whether the business generated a profit or loss and is built from invoiced revenue and recorded expenses.
Example
The quarterly P&L shows $150k in invoiced revenue against $120k in total expenses for a $30k net profit.
Why It Matters
The P&L is the primary tool for understanding business profitability and guiding decisions.
Related Resources
Related Accounting Basics Terms
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