Profit and Loss Statement

Profit and Loss Statement is produced to summarize the revenues, expenses and costs incurred during a specified period of time. This period is decided by the management of the company, which can be a fiscal quarter or year.

The statement provides information for the interested parties about the ability of an organization to generate profit by increasing revenue and reducing costs.

This statement is also called income statement or income and expense statement
What is meant by cost is the cost of good sold, operating expenses, tax expense and interest expense. The bottom line is net income (profit).