Profit and Loss Statement - P&L

A financial statement that summarizes the revenues, costs and expenses incurred during a specific period of time - usually a fiscal quarter or year. These records provide information that shows the ability of a company to generate profit by increasing revenue and reducing costs. The P&L statement is also known as a "statement of profit and loss", an "income statement" or an "income and expense statement".

The statement of profit and loss follows a general form as seen in this example. It begins with an entry for revenue and subtracts from revenue the costs of running the business, including cost of goods sold, operating expenses, tax expense and interest expense. The bottom line (literally and figuratively) is net income (profit). Many templates can be found online for free, that can be used in creating your profit and loss, or income statement.

The balance sheet, income statement and statement of cash flows are the most important financial statements produced by a company. While each is important in its own right, they are meant to be analyzed together.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Profit and Loss — may refer to:* Profit Loss , monthly business magazine founded in July 1999 especializing in Foreign exchange market and derivative markets * Profit and Loss ( DS9 episode), the eighteenth episode of the second season of the television series… …   Wikipedia

  • Profit (accounting) — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • Statement of retained earnings — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • Income statement — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • Tax profit — or taxable profit is used to distinguish between accounting profit or earnings (the number that is generally referred to in financial results for public companies and quoted in the press). Taxable profit is the number that is used to calculate… …   Wikipedia

  • Business ownership within England and Wales — There are many ways in which a business may be owned under the legal system of England and Wales.Different types of ownership are suitable for organisations depending on the degree of control the owners wish to have over the business. The choice… …   Wikipedia

  • Dunkirk, Allegheny Valley and Pittsburgh Railroad — The Dunkirk, Allegheny Valley and Pittsburgh Railroad is a historic railroad company that operated in Pennsylvania and New York. Chartered in 1867, its first passenger train ran in 1871. After several mergers and name changes, it was leased to… …   Wikipedia

  • Preservation (library and archival science) — Preservation is a branch of library and information science concerned with maintaining or restoring access to artifacts, documents and records through the study, diagnosis, treatment and prevention of decay and damage. [cite web… …   Wikipedia

  • Earnings before interest, taxes, depreciation and amortization — (EBITDA) is a non GAAP metric that can be used to evaluate a company s profitability.::EBITDA = Operating Revenue – Operating Expenses + Other RevenueIts name comes from the fact that Operating Expenses do not include interest, taxes, or… …   Wikipedia

  • National Commission on Fiscal Responsibility and Reform — Part of a series of articles on Unit …   Wikipedia

  • Mergers and acquisitions — Merger redirects here. For other uses, see Merge (disambiguation). For other uses of acquisition , see Acquisition (disambiguation). Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.