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Also known as ‘profit and loss statement’, ‘statement of revenue and expenses’ it is one of the three major financial statements. It measures a company’s financial performance for a specific accounting period. It informs about the income earned, amount receivables, expenses incurred, profit and loss over a period. The statement is created on monthly, quarterly or annual basis. To derive the figure for actual profit or loss all costs are subtracted from the revenue to reach the ‘Net Income’.

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