Profit and Loss
Profit and Loss (P & L) responsibility is one of the most important responsibilities of any executive position. Having P & L responsibility involves monitoring the net income after expenses for a department or entire organization, with direct influence on how company resources are allocated.

Profit and loss management is the way you handle your business’s profits and losses. Managing P&L means you work toward having greater revenues and fewer expenses. You can learn where you need to cut business expenses and plan ways to increase your income when managing P&L.

Profit and Loss Account is a period statement which is prepared to show the profit or loss incurred by the Organization in the year for which it is prepared. It is prepared to disclose the result of operations of all the business transactions during a given period of time. It is also known as profitability statement .

How to write a profit and loss statement

1. Step 1: Calculate revenue.
2. Step 2: Calculate cost of goods sold.
3. Step 3: Subtract cost of goods sold from revenue to determine gross profit.
4. Step 4: Calculate operating expenses.
5. Step 5: Subtract operating expenses from gross profit to obtain operating profit.

A profit and loss statement (P&L), or income statement or statement of operations, is a financial report that provides a summary of a company’s revenues, expenses, and profits/losses over a given period of time.

How to Effectively Manage your Profit and Loss

1. Do an initial assessment. Make a review of your past profit and loss reports and compare them to your current one.
2. Use analytical tools.
3. Take note of increase in expenses.
4. Review company sales.

Answer : Balance Sheet is a Statement showing financial position of the business on a particular date. It has two side one source of funds i.e Liabilities, the left side of the balance sheet and application of funds i.e assets, the right side of the balance sheet.

A profit and loss statement (P&L), or income statement or statement of operations, is a financial report that provides a summary of a company’s revenues, expenses, and profits/losses over a given period of time. The P&L statement shows a company’s ability to generate sales, manage expenses, and create profits.

PnL stands for profit and loss, and it can be either realized or unrealized. When you have open positions, your PnL is unrealized, meaning it’s still changing in response to market moves.

In investment banking, PnL Explained – also called P&L Explain, P&L Attribution or Profit and Loss Explained – is an income statement with commentary that attributes or explains the daily fluctuation in the value of a portfolio of trades to the root causes of the changes.