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…

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