2. What is 'Profit and Loss Statement (P&L)'
The profit and loss statement is a financialstatement that
summarizes the revenues, costs and expenses incurred during
a specified period, usuallya fiscalquarter or year. P&L
statement is synonymous with the income statement. These
records provide information about a company's ability or
inability to generate profit by increasing revenue, reducing
costs or both. Some refer to the P&L statement asa statement
of profit and loss, income statement, statement of operations,
statement of financialresults or income, earnings statement
and expense statement.
3. What is the difference between P&L and balancesheet?
One of the major differences between the
profit and loss statement and the balance sheet
involves their respective treatments of time. The
balance sheet summarizes the financial position of a
company for one specific point in time. The P&L
statement shows revenues and expenses during a
set period of time.
4. ISBALANCESHEETSAMEASPROFITANDLOSS?
The income statement summarizes
the total revenue, expenses and
profit or loss incurred during the
period covered. A balance sheet does
not involve time periods similar to
income statements. Instead, it reports
the value of all assets, liabilities and
equity as of a given date.
