A Profit and Loss (P&L) statement shows a company's revenues, costs, and expenses during a specific period—typically quarterly or annually.
It reflects the company's financial performance by indicating whether it has made a profit or incurred a loss during that timeframe.
For example, if a company reports $500,000 in revenue against $300,000 in expenses on its P&L statement for the year, it indicates a profit of $200,000.
This statement is crucial for stakeholders to assess the company's profitability trends and make informed business decisions.
