Another important aspect of company accounts introduction, a profit and loss statement that summarizes the total revenues and expenses incurred by a company, over a specific period of time. It provides information about the ability of that company to engender profit either by increasing its revenues or by cutting the expenses.It is different from a balance sheet in assessing the company's performance over a time span of, let's say, a year rather than providing just a snapshot like a balance sheet. It is one part of the company accounts introduction, and therefore should not be solely relied upon in estimating the financial stability of a company.