Revenue
Revenue is the income generated by normal business activity. Depending on the business, the P&L may separate product sales, service revenue, or other operating income.
Direct costs or cost of goods sold
Businesses that sell products or have direct delivery costs may separate those costs from general operating expenses. The exact structure depends on the business and accounting setup.
Operating expenses
These are the recurring costs of running the business—such as rent, software, professional services, marketing, insurance, and other categories used in the chart of accounts.
Net income
After expenses are deducted from revenue, the remaining amount is net income or net loss for the period. That is an accounting result; it is not automatically the same as cash in the bank.
How owners can use the P&L
Compare the current month with prior months, look for unusual changes, track gross margin where relevant, and connect large movements to real business events. The value comes from reviewing a consistent statement over time.