Net Income Statement Jonesboro GA

Net income is like earnings before interest and tax (EBIT) and can vary considerably depending on which accounting methods are used to report sales revenue and expenses.

Local Companies

A & A Financial Services Inc
(404) 761-1696
3420 Norman Berry Dr
Atlanta, GA
A Plus Financial Services LLC
(404) 363-1702
3825 Jonesboro Rd Se
Atlanta, GA
Taylor Bean and Whitaker
404-454-3658
6707 MANCHA STREET
COLLEGE PARK, GA
Georgia Federal Credit Union - Lithonia
770-987-1040
2695 Panola Roard
Lithonia, GA
RBC Centura Bank
770-413-3600
7231 Rockbridge Road
Lithonia, GA
Washington Mutual Bank - Lithonia
678-418-2506
3007 Panola Road
Lithonia, GA
Wealth & Wisdom Resource Group
678-526-9300
6860 Main Street
Lithonia, GA
Time Finance
(404) 577-3650
41 Marietta St NW
Atlanta, GA
1st Infinity Tax Services
(404) 880-4667
235 Peachtree St
Atlanta, GA
Gateway Mortgage Group
678-432-3001
2002 Hwy 42 N
McDonough, GA

Provided By:

Net income is like earnings before interest and tax

Author: Anamika Gupta

Parts of an Income Statement, Part 3

While some lines of an income statement depend on estimates or forecasts, the interest expense line is a basic equation. When accounting for income tax expense, however, a business can use different accounting methods for some of its expenses than it uses for calculating its taxable income. The hypothetical amount of taxable income, if the accounting methods used were used in the tax return is calculated. Visit at http://available-grant-money.blogspot.com

Then the income tax based on this hypothetical taxable income is fitured. This is the income tax expense reported in the income statement. This amount is reconciled with the actual amount of income tax owed based on the accounting methods used for income tax purposes. A reconciliation of the two different income tax amounts is then provided in a footnote on the income statement.

Net income is like earnings before interest and tax (EBIT) and can vary considerably depending on which accounting methods are used to report sales revenue and expenses. This is where profit smoothing can come into play to manipulate earnings. Profit smoothing crosses the line from choosing acceptable accounting methods from the list of GAAP and implementing these methods in a reasonable manner, into the gray area of earnings management that involves accounting manipulation.

It's incumbent on managers and business owners to be involved in the decisions about which accounting methods are used to measure profit and how those methods are actually implemented. A manager can be requires to answer questions about the company's financial reports on many occasions. It's therefore critical that any officer or manager in a company be thoroughly familiar with how the company's financial statements are prepared. Accounting methods and how they're implemented vary from business to business. A company's methods can fall anywhere on a continuum that's either left or right of center of GAAP.Visit at http://available-grant-money.blogspot.com


About the Author:

Article Source: http://www.articlesbase.com/finance-articles/net-income-is-like-earnings-before-interest-and-tax-910070.html

Featured Local Company

A & A Financial Services Inc

(404) 761-1696
3420 Norman Berry Dr
Atlanta, GA

Related Local Events
(Ce Credit Option) Hud Sales Training: Successfully Selling Hud Homes In Georgia
Dates: 11/12/2009 - 11/12/2009
Location: Empire Board of REALTISTS
Atlanta, GA
View Details

How To Profit From Foreclosures
Dates: 10/24/2009 - 10/24/2009
Location: Renaissance Waverly Hotel
Atlanta, GA
View Details

The Millionaire Mind Evening
Dates: 10/6/2009 - 10/6/2009
Location: Renaissance Atlanta Hotel Downtown
Atlanta, GA
View Details

(Ce Credit Option) Hud Sales Training: Successfully Selling Hud Homes In Georgia
Dates: 9/24/2009 - 9/24/2009
Location: Empire Board of REALTISTS
Atlanta, GA
View Details

Preparing For Economic Recovery: Will Your Team Be Ready?
Dates: 9/10/2009 - 9/10/2009
Location: Twelve Hotels & Residences (Centennial Park)
Atlanta, GA
View Details
Rate Article
     
Articles Insider

Rss   Delicious   Digg   Add To My Yahoo   Add To My Google   Bookmark   Search Plugin

Topics:
Advertising Family Home Services Real Estate Resources
Business Services Fashion Industrial Goods & Services Retail & Consumer Services
Career Financial Services Insurance Software
Cars Food & Beverage Internet Technology
Computer Hardware Franchise Legal Telecommunications
Construction Health Miscellaneous Trade Shows
Education Holidays Nightlife Travel
Entertainment Home Appliances Online Database Weddings
Environmental Home Electronics Pets World History