What is a profit and loss statement?

 

Profit and loss statement (P&L)

In accounting, what is a P&L? P&L is a common abbreviation of “profit and loss,” used as shorthand for “profit and loss statement.” As a part of a public company’s mandatory reporting, along with the balance sheet and the cash flow statement, the profit and loss statement is a financial report typically issued every quarter.

The profit and loss statement is often called the “income statement,” as it outlines all incurred revenues, costs and expenses of a company over a specified period, providing insight into a company’s ability to generate income.

To learn how to create a profit and loss statement, check out this post.