| It is also called a "P&L" and income statement. It shows a company's business revenue and expenses for a specific period of time. For example, for the six months ending June 30, 2002. The difference between total revenue or total sales and the total expenses is the company's net income. A key element of the profit and loss statement, one that distinguishes it from a balance sheet, is that the amounts shown on the statement represent transactions over a period of time, such as, six months ending June 30, 2002, while the items on the balance sheet show information for a specific date, such as, June 30, 2002. |
