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lets talk about profit lets talk about loss lets talk about a profit and loss statement profit in green because making a profit is good loss in red because making a laws is not so good the main idea of profit and loss is to compare a companys Revenue to its expenses simply put revenue is the number of units sold times the selling price per unit across all the product lines the company may have expenses are the number of units sold times the cost per unit plus operating expenses plus interest and taxes when looking at profit and loss its always about a period of time a month a quarter or a year you record a profit if Revenue exceeds expenses for the period you record a loss if expenses exceed revenue lets look at the real world examples of profit and loss one of the most profitable companies in the world is Apple for the fiscal year ended September 24 2022 Apple recorded a profit of a hundred billion dollars 100 billion dollars thats a one with eleven zeros revenue of 394 billion