The profit and loss statement, also known as an income statement, summarizes the revenues, costs, and expenses incurred by a company over a specific period of time, usually a fiscal quarter or year. It shows a company's ability to generate profit by increasing revenues and reducing costs. The balance sheet provides a snapshot of a company's financial position on a given date by reporting the value of all assets, liabilities, and equity, whereas the profit and loss statement covers a period of time and shows revenues and expenses. An income statement involves time periods to report total revenue, expenses, and profit or loss, while a balance sheet does not and instead reports financial values as of a single date.

1. By: Charlie Mae De Guzman

2. What is 'Profit and Loss Statement (P&L)'
The profit and loss statement is a financialstatement that
summarizes the revenues, costs and expenses incurred during
a specified period, usuallya fiscalquarter or year. P&L
statement is synonymous with the income statement. These
records provide information about a company's ability or
inability to generate profit by increasing revenue, reducing
costs or both. Some refer to the P&L statement asa statement
of profit and loss, income statement, statement of operations,
statement of financialresults or income, earnings statement
and expense statement.

3. What is the difference between P&L and balancesheet?
One of the major differences between the
profit and loss statement and the balance sheet
involves their respective treatments of time. The
balance sheet summarizes the financial position of a
company for one specific point in time. The P&L
statement shows revenues and expenses during a
set period of time.

4. ISBALANCESHEETSAMEASPROFITANDLOSS?
The income statement summarizes
the total revenue, expenses and
profit or loss incurred during the
period covered. A balance sheet does
not involve time periods similar to
income statements. Instead, it reports
the value of all assets, liabilities and
equity as of a given date.