Profit And Loss Section Of Income Statement

Income statement also known as profit loss account is a report of income expenses and the resulting profit or loss earned during an accounting period.

Profit and loss section of income statement. The profit or loss is determined by taking all revenues and subtracting all expenses from both operating and non operating activities this statement is one of three statements used in both corporate finance including financial modeling and accounting. A balance sheet gives a point in time view of a company s assets and liabilities while the p l statement details income and expenses over an extended period of time usually one year. Revenues other comprehensive income expenses income gross profit and gains or losses. The profit and loss p l statement is a financial statement that summarizes the revenues costs and expenses incurred during a specified period usually a fiscal quarter or year.

Both the profit and loss statement and balance sheet are important financial statements but each has a different function for business owners and investors. A profit and loss statement p l or income statement income statement the income statement is one of a company s core financial statements that shows their profit and loss over a period of time.