Profit and Loss Statement

A financial report that summarizes a company's revenues, costs, and expenses over a specified period of time, typically a fiscal quarter or year. P&L statements show how much profit or loss was generated or incurred by a company. They also show a company's ability to generate sales, manage expenses, and create profits.
P&L statements are also known as an income statement or statement of operations. They are important because they help measure a business's success, enabling leadership to make more informed decisions. With a P&L statement, management can determine which activities are generating a return on investment and which are losing money.