Profit and Loss Statement Definition

One of the primary financial performance indicators for any small business is its profit and loss statement, or P&L, in which the total expenses and revenue for a certain period of time are summarized.

Profit and Loss Statement Extended Definition
The profit and loss statement (P&L) is one of the main tools a small business can use to present a picture of its financial situation and performance. P&L is also called an income statement.

The P&L summarizes the total revenue and all the various expenses over a certain period of time and will, in the end, present a final number representing the profit or loss of a business during that period of time.

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Last Updated By

Rachel Blakely-Gray | Apr 17, 2023