How do I Find the Profit?

by Lauren
(New York)

Q: How do I find the profit for the year? And what if there isn't a profit but a loss??

A: The profit is shown at the bottom of the profit and loss statement (also known as the income statement).

Remember that profit is income less expenses.

A loss simply means that expenses have exceeded the income for the period.

It means that the business is performing poorly.

The loss will also be shown at the bottom of the profit or loss statement (income statement).