Both involve a company’s finances, but their differences are significant Reviewed by Gordon Scott Fact checked by Pete Rathburn The balance sheet and the profit and loss (P&L) statements are ...

Also called a Profit and Loss (P&L) Statement or a statement of revenue and expense, the income statement is one of three major documents, along with the cash flow statement and the balance sheet ...

Balance sheets are not meant to show earnings the way that a profit and loss statement (P&L) does. Instead, balance sheets are meant to balance out, ... Pros and cons of using a balance sheet .

Gross profit calculates as revenue minus the cost of goods sold (COGS). Gross profit margin, a percentage, helps compare profitability across companies. High gross profit indicates a company's ...