Definition of Profit and loss statement
A profit and loss statement is actually a financial statement that sums up the costs, earnings and charges incurred during a specific time frame, usually a fiscal quarter or year.
Brief Explanation of Profit and loss statement
These records provide information about a company’s ability or lack to generate benefit by reducing costs, increasing revenue, or both. The profit and loss statement known as the income statement is one of three fiscal reports every public company issues quarterly and annually, along with the stability piece and the income statement. It is also known as income statement, statement of profit and loss, statement of economic results, statement of operations, and expense statement. The stability piece, on the other hand, is a snapshot, showing what is owned and owed at a single moment. The income statement, like the income statement, shows changes in accounts over a few days. Under the accrual method of accounting, income and charges can be logged before the money actually changes hands. It is important to compare the income statement with the income statement.