The Profit & Loss Statement is a crucial financial statement summarising the costs, revenues and expenses incurred by a business during a specific period, usually a quarter or year. Profit & Loss Account is also known as P&L A/c, Profit & Loss Statement, Income Statement or Income and Expense Statement. The Profit & Loss Account reports the incomes and expenses directly related to an organisation to measure the performance in terms of profit or loss. It is a financial statement reflecting the outcome of business activities of an organisation during an accounting period. Profit & Loss Account reflects the income and expenses of the business.
Every business wants to know the incomes earned and expenses incurred during a particular period, usually at the end of the year.
