Financial Accounting

Financial accounting is the field related with the accountancy. It is just like a process of converting financial data into financial information. It deals with recording, summarizing and presenting the financial data of the organizations…

Accounting

It is the measurement,communicating and interpreting financial activity. Accounting is also widely referred as a “language of business”. There are five type of accounts in accounting  are assets,liabilities,owner equity(Capital),expense and revenues. These accounts are the…

Format of Income Statement

ABC Company Income Statement 1/1/2008 Sales(Revenue) ————————– $4000 Cost of good sold ———————– $2500 ———————————————— Gross Profit————————————-$1500 Marketing expense———————$200 Administrative expense—————-$300 —————————————— Total expense——————————500 ———————————————— EBIT———————————————$1000 Interest———————————-$500 ———————————————– EBT———————————————-$500 Taxes————————————$250 —————————————————– Net Inome—————————————-$250