A profit and loss statement shows all your revenue and expenses. The P&L can also be called the income statement or earnings statement. Items on the profit and loss can include things like payroll, advertising, rent and insurance. It will also show your earnings from sales and other forms of income. Your total profit or loss for the time period is what you’ve earned minus what you’ve spent. If this amount is positive, it’s called a net income. If it’s negative it’s called a net loss.