Profit and loss account

Related terms

• Profit

  The financial surplus remaining when income exceeds the relevant costs and expenses over a period.

• Debit balance

  An account balance showing money is owed from that account. In a director’s loan account, it commonly means the director owes money to the company.

• Financial statement

  A summary of income, spending, assets, liabilities and sometimes cash flow, used to understand what can realistically be paid.