Finance
Profit and Loss Account
The profit and loss account (P&L) is a report that compares a company’s income and expenses for a specific period. It shows whether the result is a profit or a loss and complements the balance sheet by adding a view of operating performance. It is one of the key reports in accounting and helps decision-makers assess business development in a clear and traceable way. It is usually prepared for a month, a quarter or a financial year, so that at the end of a period it becomes immediately clear whether ongoing business activities were economically successful.
