How to answer Profit and Loss P&L Job Interview Questions (2024)

FAQs

How to answer P&L questions in an interview? ›

Tell them, though you were not directly responsible for p&l, that you understand it on a fundamental level and that you are looking forward to coming up to speed in this area and being in a position where you will have a more active role with it.

P&L Responsibility Meaning

It often involves analyzing financial reports, revenue, and other expenses to find ways for increasing profits and reducing costs. In some cases, P&L responsibilities also come with being able to interpret financial data to help an organization operate more efficiently.

The main categories that can be found on the P&L include: Revenue (or Sales) Cost of Goods Sold (or Cost of Sales) Selling, General & Administrative (SG&A) Expenses.

Profit Loss Formula

Profit = Selling price (S.P.) - Cost price (C.P.) Loss = Cost price (C.P.) - Selling price (S.P.)

A profit and loss (P&L) statement, also known as an income statement, is a financial statement that summarizes the revenues, costs, expenses, and profits/losses of a company during a specified period. These records provide information about a company's ability to generate revenues, manage costs, and make profits.

To explain it, try to split the P&L into the 3 main segments: sales, cost of sales, and expenses. The difference is Net Income. Use the % of sales ratios in your discussion.

If a shopkeeper brings a cloth for Rs.100 and sells it for Rs.120, he has made a profit of Rs.20/-. If a salesperson has bought a textile material for Rs.300 and has to sell it for Rs.250/-, he has gone through a loss of Rs.50/-.

What is the easiest way to do a profit and loss statement? ›

The single-step method is the simplest way to create a P&L statement. With this approach, you list all revenue items at the top of the statement and subtract all expenses to arrive at the net income or loss. It requires only a single calculation.

Understanding P&L responsibility

This responsibility signifies a deep trust placed in a leader's capability to influence the company's financial health. A leader with P&L responsibility is expected to make strategic decisions that drive revenue, manage costs, and ultimately, enhance profitability.

Use relevant keywords: Incorporate keywords related to P&L management and those specifically mentioned in the job description. This includes terms like "budget management," "financial forecasting," "cost reduction," and "revenue growth."

Here's the main one: The balance sheet reports the assets, liabilities, and shareholder equity at a specific point in time, while a P&L statement summarizes a company's revenues, costs, and expenses during a specific period.

The goal of a P&L statement is to measure a company's profits by subtracting expenses from income. This type of report helps provide an overview of the business's overall financial health.

A profit and loss (P&L) statement, also known as an income statement, is a financial statement that summarizes the revenues, costs, expenses, and profits/losses of a company during a specified period. These records provide information about a company's ability to generate revenues, manage costs, and make profits.