Definition

Noun: 1. A financial statement summarizing revenues, costs, and expenses incurred during a specific period: This statement, also known as an income statement, shows a company's financial performance by calculating the net profit or loss for that period. It details how revenue is transformed into net income. 2. The account or record itself that tracks these gains and losses: Refers to the specific ledger or bookkeeping account where income and expenses are recorded to determine the final financial result.

Usage

• The term is most commonly used in business, accounting, and finance contexts.
• It is often part of the phrase "profit and loss account" or "profit and loss statement" (P&L).
• It describes the core financial document used to assess a company's operational success or failure over time.

Examples

• Noun:
  • The CEO reviewed the quarterly profit and loss to assess the company's performance.
  • All expenses must be accurately recorded in the profit and loss account.
  • A detailed profit and loss statement is essential for securing a business loan.

Advanced Usage

• "to be in charge of profit and loss": To have managerial responsibility for the financial performance of a division or entire company.
  • As the new director, she is fully in charge of the division's profit and loss.
• "on a profit and loss basis": Measured or evaluated according to whether it generates a net profit or a net loss.
  • Each project is evaluated on a profit and loss basis at its conclusion.

Variants and Related Words

• Profit and Loss Statement (P&L Statement) (n): The full, formal name for the financial report.
• Income Statement (n): A synonymous term for a profit and loss statement.
• Earnings Report (n): A similar financial statement, often used for publicly traded companies.

Synonyms

• Income statement
• Earnings statement
• Statement of operations
• Financial results

Related Phrases

• Bottom line: The final net profit or loss figure on a P&L statement; used colloquially to mean the ultimate result or most important factor.
  • The bottom line of the report showed a significant loss this quarter.
• P&L: A common abbreviation used in business and finance.
  • Please prepare the P&L for the board meeting.

Noun

1. an account compiled at the end of an accounting period to show gross and net profit or loss