Net Income Statement Lafayette LA

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

Smith J Burnie
(337) 261-0656
1005 E Saint Mary Blvd
Lafayette, LA
World Finance
(337) 232-5514
1800 NE Evangeline Trwy
Lafayette, LA
Lindsey Jim Cfp
(337) 989-1946
141 Ridgeway Dr
Lafayette, LA
Securities of America Inc
(337) 235-1494
1007 Saint John St
Lafayette, LA
Broussard - Kelly Financial Group
(337) 266-5574
106 Oil Center Dr Ste 102
Lafayette, LA
Royal Alliance Associates
(337) 267-4422
102 Versailles Blvd
Lafayette, LA
Brothers Enterprises of Louisiana
(337) 406-2008
218 Rue Louis Xiv Ste C
Lafayette, LA
Perez Sylvia & Associates
(337) 235-9911
110 E Kaliste Saloom Rd
Lafayette, LA
Financial Partners of Louisiana Llc
(337) 265-2500
102 Versailles Blvd
Lafayette, LA
Raymond James Financial Services
(337) 266-5329
200 S Audubon Blvd
Lafayette, LA

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

Credit One Restoration LLC

225-214-3491
5841 S Sherwood Forest Blvd
Baton Rouge, LA


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