What is a profit and loss statement (P&L)?

A profit and loss statement (P&L) is a financial report that summarizes a business's revenue, costs, and expenses over a specific period. Also known as an income statement, a P&L shows whether a business generated a profit or incurred a loss.

Example: A monthly P&L may show $100,000 in revenue, $70,000 in expenses, and $30,000 in net income.

Related terms: Income Statement, Revenue, Expenses, Net Income