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What is a profit and loss statement
#hat is profit and loss statement. What is the difference between an income statement and profit and loss statement.
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What is a Profit and Loss Statement?
A profit and loss statement (P&L), also known as an income statement, is a financial report that shows a company’s revenues, costs, and expenses over a specific period, usually one fiscal quarter or year.
Income Statement vs Profit & Loss Statement:
Both are used interchangeably since they reflect how well the business has performed financially.
Only P&L Statement Mortgage Loans:
These loans cater to self-employed individuals who don’t have traditional documents to prove their income. Instead of tax returns, lenders base their incomes on P&L statements, which should ideally show stable earnings over time and are typically prepared by CPAs.