A profit and loss statement, or P&L, shows income and expenses over a period of time, such as a month, quarter or year. Categories of income and expense include those normally used by the business.
The level of detail is up to the business owner and his accountant. A restaurant owner may choose to record bar revenue separately from food sales or include both under "Sales." Businesses that manufacture items or run an inventory need a "Cost of Goods Sold" category. Costs incurred to run the business, such as advertising, utilities, rent or wages, are listed in the "Expense" category. At the bottom of the template, the income and expenses are netted to show whether the business had a profit or loss.