Profit & Loss Statement
Definition
The Profit & Loss statement (P&L, also called the income statement) shows revenue, expenses, and profit over a period of time, such as a month or a year.
Example
For March, a business shows $10,000 in revenue, $7,000 in expenses, and $3,000 in net income. The P&L covers the entire month.
Why It Matters
The P&L shows whether the business is profitable. It covers a period of time, unlike the Balance Sheet, which shows a single date.