A Profit and Loss statement reflects what type of account activity?

Answer 1

It reflects Nominal accounts activity. A Nominal Account is an Income statement account (revenue and expense) that is closed out at the end of the year. (as opposed to a Real Account, i.e., a Balance sheet account that is carried forward into the next year.)

Answer 2

A profit and loss statement reflects the account activity of your revenue and expense accounts.

In its simplest form all revenues are added together and all expenses are subtracted from this total to determine your profitability for the time period.

In a more complex profit and loss statement the profit and loss will be measured at a variety point such as EBIT (earnings before income and taxes) earnings before extraordinary events, or earnings from ongoing activities.