Profit-and-Loss Account Law and Legal Definition

Profit-and-loss account means an account compiled at the end of the financial year, showing that year's gross and net profit or loss. It gives an account of all the operations such as income and expense during a given period. It is generally kept by all registered companies and is published in each calendar year for shareholders' information. It helps to understand whether an organization is making a profit or loss. It is generally used as an alternative term for revenue account.