What is a profit and loss statement?

Answer by  richmiller3214 (138)

This statement is a report summarizing the business's income and expenses for the period. All income - cost of goods sold = gross profit - expenses = net income.

Answer by  adam84 (58)

A profit and loss statement summarizes the costs, revenues and profits for a period of time, usually a quarter or year. An example lists the revenues then subtracts the expenses.

Answer by  richmiller3214 (138)

The profit and loss statement shows the difference between the business's revenues and expenses. Shows gross profit and net income. Income Sales $10,000 Total Sales $10,000 COGS Cost of Sales ($5,000) Total COGS ($5,000) Gross Profit $5,000 Expenses Rent Expense ($1,000) Fuel Expense ($1,000) Total Expense ($2,000) Net Income $3,000

Answer by  Roland27 (16334)

This usually happens when you file taxes. It's a form that states any profits or losses from the year. This only applies to businesses. It looks just like a tax form and you fill in the monetary amounts.

Answer by  estherkimani75 (40)

In the course of doing business, a prudent business man compares sales against expenses incurred. The simplest format to use is to simply draw a big 'T' and on one side list all the expenses and sales/incomes on the other side.