Profit and Loss Statements

What does it mean?

Profit and Loss Statements are similar to income statements. They maintain a record of a business’s net income and costs for any given period of time as well as the ability of the company to generate profits in synchronization with other factors.

Points to remember  

• These statements are usually used to evaluate a company’s performance at any point of time.
• They also help in analysing the cash flow of the company while helping the company regulate it and invest better.