A Profit and Loss Statement (P&L), also known as an Income Statement, is a financial report that provides a summary of a company’s revenues, expenses, and profits over a specific period of time. It shows whether a business is profitable by calculating the net income after deducting expenses from revenues. This crucial document helps businesses understand their financial performance and make informed decisions.
Key Components of a Profit and Loss Statement:
- Revenue
- Cost of Goods Sold (COGS):
- Gross Profit
Difficulty for Tax return depending your status
Students
Difficulty
20%
Business
Difficulty
50%