Profit and Loss Statement
- A profit and loss statement is a quarterly or annual document, published
by a public company. It shows the earnings, expenses and net profits.
Net profit is calculated by subtracting the expenses from the earnings.
The result is what the company has earned, or lost, in a given time
frame ( quarter or year). Together with the balance sheet, the profit
and lost statement are the most important financial reports that a
public company has to publish. The profit and loss statement shows transactions
over a given time period, the balance sheet gives insight in holdings
on a specific date.