Commerce profit and loss
Understand the Problem
The question is asking about the concepts of profit and loss in commerce, which typically involves understanding how businesses calculate their profits and losses based on their revenues and expenses.
Answer
A P&L statement summarizes revenues, expenses, and profits or losses over a period.
A profit and loss (P&L) statement, also known as an income statement, summarizes a company's revenues, costs, expenses, and profits or losses over a specified period. It is used to evaluate a company's ability to generate profit and manage its expenses.
Answer for screen readers
A profit and loss (P&L) statement, also known as an income statement, summarizes a company's revenues, costs, expenses, and profits or losses over a specified period. It is used to evaluate a company's ability to generate profit and manage its expenses.
More Information
The P&L statement helps businesses track their financial performance, showing whether a business is profitable. It is an essential tool for financial planning and analysis.
Tips
A common mistake is not accurately categorizing expenses and revenues, which can lead to an incorrect assessment of profitability.
Sources
- What is a profit and loss (P&L) statement - QuickBooks - quickbooks.intuit.com
- Profit and Loss Statement: Definition, Examples & How To Do One - paychex.com
