Financial accounting is a critical facet of accounting that is primarily concerned with the preparation and presentation of a company’s external financial statements. These statements include the income statement, balance sheet, statement of cash flows, and the statement of stockholders’ equity. The income statement, in particular, plays a pivotal role in assessing a company’s profitability over a specified period, which can be tailored to meet the company’s reporting needs. It provides stakeholders, such as investors and creditors, with valuable insights into the financial performance of a business, aiding them in making informed decisions regarding investments, loans, and overall financial health assessments.