Did you like how we did? Rate your experience!

4.5

satisfied

46 votes

Is it "Profit and loss" or "profit or loss" in the income statement?

An income statement is commonly called a P&L, which stands for profit and loss. Semantically, it does not make sense, since a single accounting period (month, quarter, year-to-date) can only result in a net profit or a net loss. Income statements are commonly presented with more than one accounting period, comparing a current period to a comparable accounting period in the prior year. It is possible that one period shows a profit, while the other shows a loss. It's also possible that both periods show a loss or that both periods show a profit. One may assume that profit or loss makes better semantic sense, but the income statement is never called a P or L. Don't ask me why. I did not make up the rules.

100%
Loading, please wait...