Profit and Loss Statement

 a summary for a period of time of all of the sales or revenue of a firm, its expenses, and the resulting profit (or loss). The time period is at the discretion of the firm, but most firms have monthly, quarterly, and annual profit and loss statements. Once again there is a basic equation that captures the profit and loss statement. This is: P = S – CGS – SGA – T

Where P = profit or loss, S = sales or revenue, CGS = cost of goods and services sold, SGA = selling and general administrative expenses, and  T = taxes