What is a profit and loss statement?

< 1 min read

In accounting, P&L is a common abbreviation for “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.