April 2022
Beginner
535 pages
11h 35m
English
Content preview from The Finance Book, 2nd Edition
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3 Profit and loss (P&L)
‘Between calculated risk and reckless decision-making lies the dividing line between profit and loss’
Charles Duhigg, journalist and non-fiction author
In a nutshell
The P&L (‘profit and loss account’) or ‘income statement’ is one of the primary financial statements prepared by a company. It shows a company’s financial performance over time.
The purpose of a P&L is to show the profit (or loss) made by an organisation over time, typically a year. The P&L shows the income earned and expenditure incurred to generate either profit or loss.
Need to know 
The P&L records the financial activities of a business over a period ...
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