profit-and-loss statement

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Sure! Let's break down the term "profit-and-loss statement" so it's easy to understand.

Definition:

A profit-and-loss statement (often called a "P&L statement") is a financial document that shows how much money a business has made (profit) and how much money it has lost (loss) over a specific period of time, like a month or a year. It helps businesses understand if they are earning money or losing money.

Usage Instructions:

• You can use this term when discussing business finances, accounting, or when analyzing a company's financial health.
• Example sentence: "The company prepared its profit-and-loss statement to see if it had earned enough money last quarter."

Example:

Imagine you have a small bakery. Your profit-and-loss statement for January might look like this:

Advanced Usage:

In more advanced discussions, you might hear phrases like "operating income" or "net income" that are often included in profit-and-loss statements. These terms help give a clearer picture of a company's financial performance.

Word Variants:

• Profit: This means the money made after costs are subtracted.
• Loss: This means the money lost when costs exceed sales.
• Statement: This is a formal account or report.

Different Meaning:

While "profit-and-loss statement" specifically refers to financial results, in a broader sense, "profit" and "loss" can be used in various contexts, such as relationships or personal experiences (e.g., "He felt the profit of friendship" or "She suffered a loss when her pet passed away").

Synonyms:

• Income statement
• Earnings statement
• Revenue statement

Idioms and Phrasal Verbs:

• Break even: This means that a business's income and expenses are equal, resulting in neither profit nor loss.
  • Example: "After several months, we finally broke even with our new product."
• In the red: This means a business is losing money.
  • Example: "The store has been in the red for the last two months."
• In the black: This means a business is making a profit.
  • Example: "Thanks to our holiday sales, we're in the black this quarter."

Academic

Noun

1. a financial statement that gives operating results for a specific period

Synonyms

• income statement
• earnings report
• operating statement