ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The profit and loss (P&L) statement is a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period. The P&L statement is one of three financial statements that every public company issues quarterly and annually, along with the balance sheet and the cash flow statement.

Detailed explanation-2: -What is an income statement? Also known as the profit and loss (P&L) statement, the income statement summarizes the financial performance of a business during a specific period, reporting revenues, cost of goods sold, overheads, and the net profit attributable to shareholders.

Detailed explanation-3: -A profit and loss statement (P&L), or income statement or statement of operations, is a financial report that provides a summary of a company’s revenues, expenses, and profits/losses over a given period of time.

Detailed explanation-4: -A profit and loss (or income) statement lists your sales and expenses. It tells you how much profit you’re making, or how much you’re losing. You usually complete a profit and loss statement every month, quarter or year.

Detailed explanation-5: -The P & L statement contains uniform categories of sales and expenses. The categories include net sales, costs of goods sold, gross margin, selling and administrative expense (or operating expense), and net profit. These are categories that you, too, will use when constructing a P & L statement.