This glossary uses Visual Finance™ to bring financial terms to life. Each example shows data from the Round Number Company, a fictional business with simplified figures to make learning easier. For more details, visit 'How to Read Visual Finance'.
The Profit or Loss Statement (the ‘P&L’) is another name for the Income Statement.
It is a summary of the Sales income and expenses for the company over the operating period – a financial history book for the fiscal period (month, quarter, year).
Profit (or loss) is shown at the bottom line of the Income Statement.
Income Statement Equation:Sales Revenue – Expenses = ProfitFor a DIY P&L Calculator, go here. |
→ The left side of the Visual Finance graphic is an Income Statement.
The above is our generic explanations of common corporate financial terminology. Actual meanings can vary widely from company to company; in order to have the correct internal definition you need to ask your Finance Department, "What do you mean by that?"
term list.