The difference between profit and loss account and balance sheet
One of the three financial statements that companies provide on a regular basis is a balance sheet. Another is a profit and loss (P&L) statement. These statements give creditors, market analysts, and investors the means of evaluating the financial strength and growth potential of a company. The third financial statement is called the cash-flow statement.
In spite of the fact that the balance sheet and the P&L statement contain some similar financial information-such as revenues, expenses, and profits-there are some substantial differences.
Here is a comparison of key differences between the balance sheet and P&L in a visual way.
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