The profit and loss statement's period of time could be a year, a year-to-date period such as nine months, a quarter of a year, one month, four weeks, 52 weeks, etc. (A few gains and losses will not be reported on the profit and loss statement and will instead be reported on the company's statement of comprehensive income.)
Under the accrual basis (or method) of accounting the revenues and expenses reported on the profit and loss statement should be:
- the revenues (sales, service fees) that were earned during the accounting period, and
- the expenses (cost of goods sold, salaries, rent, advertising, etc.) that match the revenues being reported or have expired during the accounting period
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