A profit and loss (P&L) statement is made up of several line items that document your sales amounts (revenue) and expenses. What line items make up your P&L will depend on your business. At its most basic, a P&L will include:  - Net sales (revenue) - Cost of goods sold (COGS) - Gross margin - Selling, general, and administrative (SG&A) expenses or operating expenses - Net income or profit - Taxes Your business may also have other expenses, such as: - Interest expenses - Marketing and advertising - Technology or research and development (R&D)