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Illustrations of Income statement
The format of the income statement is given as follows:
ABC LTD
INCOME STATEMENT FOR THE YEAR ENDED 31/12/
£
Revenue
x
Cost of sales
(x)
Gross profit
Other incomes (e.g. investment income)
Expenses
Distribution costs
Administration costs
Other expenses
Finance costs
Profit before
Income tax expense
Profit for the period
xx
a) By Nature
Other incomes
Raw materials consumed
Changes in finished goods and work in progress
Depreciation and armortisation
Employee benefits
Profit before tax
Income tax expenses
Errors An error is an error discovered in the current financial period but it relates to one or more previous financial periods. Such errors arise due to mathematical mistakes, m
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For what EDP is using in accounting
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