Term of the Day Monday, August 21, 2017

profit and loss statement


An official quarterly or annual financial document published by a public company, showing earnings, expenses, and net profit. Net income is determined from this financial report by subtracting total expenses from total revenue. The profit and loss statement and the balance sheet are the two major financial reports that every public company publishes. The difference between this statement and the balance sheet deals with the periods of time that each one represents. The profit and loss statement shows transactions over a given period of time (usually quarterly or annually), whereas the balance sheet gives a snapshot holdings on a specific date.
also called income statement or earnings report.

Use this term in a sentence

The company issued their profit and loss statement and it showed they had another successful quarter, with increased growth and profitability.

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You should try to keep a good profit and loss statement so that you know exactly where you stand at all times.

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Our profit and loss statement would ensure that we got what we were looking for and knew how we stood as a company.

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profit and loss account P&L