Stock Market Education

Profit & Loss of a Company: Part 1 Most Important Part of Company's Annual Report   Profit & Loss Account : Profit and Loss Account is an important financial statement  which helps us to analyze the fundamentals of a company. Also known as Income Statement or Statement of Earnings, this statement gives details of the financial performance of an individual or organization over a particular period, which is normally a accounting year, i.e., its revenues, its expenses, tax, depreciation and profits. Profit Loss Account is like a moving video, which captures the profitability of a company for the financial year under consideration.   It shows what the day to day operations of a business look like. It summarizes the money coming in and going out of a business. It provides information about a company's ability or inability to generate profit by increasing revenue, reducing costs or both.   Components of Profit and Loss Account of a Company:   Currently, all comp