profit and loss


Definition of profit and loss

: a summary account used at the end of an accounting period to collect the balances of the nominal accounts so that the net profit or loss may be shown

Examples of profit and loss in a Sentence

Recent Examples on the Web The guidelines require that audit partners are paid in line with the profits of their practice, which will have its own governance structure and profit and loss accounts. Hanna Ziady, CNN, "The Big 4 audit firms keep failing. Now they're being forced to change," 6 July 2020 Audit practices will need to publish their own profit and loss statements, separate from the overall firm’s, and make sure there are no material, structural cross-subsidies from other parts of the business, the FRC said. Nina Trentmann, WSJ, "U.K. Regulator Orders Big Four to Separate Audit Practices by 2024," 6 July 2020 Last fall, Korn Ferry, a leading global organizational consulting firm, released the result of its interviews with some of the most senior black profit and loss (P&L) leaders at Fortune 500 companies. Crystal E. Ashby, Fortune, "There is no shortage of black talent in corporate America," 18 June 2020 In his new role, Galhotra will be responsible for the profit and loss of the new commercial vehicle business. Eric D. Lawrence, Detroit Free Press, "Ford exec credited with turning around Lincoln gets key role in leadership shakeup," 16 Apr. 2020 But much of it is divorced from any consideration of profit and loss. David J. Lynch, Anchorage Daily News, "Initial U.S.-China trade deal has major hole: Beijing’s massive business subsidies," 31 Dec. 2019 Publishers typically gauge a project’s merits with a profit and loss statement—production costs weighed against a guess for how the thing might sell. Rumaan Alam, The New Republic, "Woody Allen’s Memoir Is Shrouded in Secrecy. Why?," 1 Apr. 2020 Milton Friedman used to stress that capitalism is a system of profit and loss. Daniel Tenreiro, National Review, "Bailouts Don’t Distort the Market — They Address Its Failures," 16 Mar. 2020 The Securities and Exchange Commission also filed a civil suit against Mr. Levoff and is seeking a judgment that would force him to pay back all profits and losses avoided from 2015 and 2016 trades made based on alleged insider information. Tripp Mickle, WSJ, "Former Apple Lawyer Charged With Insider Trading," 13 Feb. 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'profit and loss.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

See More

First Known Use of profit and loss

1553, in the meaning defined above

Keep scrolling for more

Learn More about profit and loss

Time Traveler for profit and loss

Time Traveler

The first known use of profit and loss was in 1553

See more words from the same year

Statistics for profit and loss

Last Updated

11 Jul 2020

Cite this Entry

“Profit and loss.” Dictionary, Merriam-Webster, Accessed 6 Aug. 2020.

More from Merriam-Webster on profit and loss

Rhyming Dictionary: Words that rhyme with profit and loss

Comments on profit and loss

What made you want to look up profit and loss? Please tell us where you read or heard it (including the quote, if possible).


Test Your Vocabulary

July 2020 Words of the Day Quiz

  • papercraft sunset
  • Which is a synonym of mien?
Spell It

Can you spell these 10 commonly misspelled words?

Syn City

Test Your Knowledge - and learn some interesting things along the way.

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!