What is Profit & Loss Account

A Profit and Loss account, also known as an income statement, is a financial statement that provides detailed information about a company's financial performance for a specific period, such as a year or quarter. It shows the revenues earned by the company, the costs and expenses incurred, and the resulting net income (profit or loss) for the period. The profit and loss account is used to measure a company's financial performance and to assess whether it is generating enough revenue to cover its expenses and generate a profit.