What is a Profit and Loss Statement?
The Profit and Loss or P&L Statement is one of the main accounting statements.
The Profit and Loss shows a business’s financial performance over an accounting period. The accounting period can be any length but is usually a month or a year.
The statement shows the Income minus the Expenditure for the period resulting in either a net profit or net loss.
It is sometimes called an Income and Expenditure Statement, particularly for a non profit making organisation.
For further information on the Balance Sheet see the Wikipedia definition.
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