Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Single-step Income Statement

Financial Accounting

4. Merchandising Operations

Single-step Income Statement

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Multiple Choice

Which financial statement reports a company's revenues and selling costs over a period of time?

Single-step Income Statement

Statement of Cash Flows

Balance Sheet

Statement of Retained Earnings

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Understand the purpose of each financial statement: The Single-step Income Statement reports revenues and expenses to calculate net income over a period of time. The Statement of Cash Flows shows cash inflows and outflows. The Balance Sheet provides a snapshot of assets, liabilities, and equity at a specific point in time. The Statement of Retained Earnings tracks changes in retained earnings over a period.

Identify the key elements of the problem: The question asks which financial statement reports revenues and selling costs over a period of time. Revenues and selling costs are components of a company's income or profit calculation.

Recall the structure of the Single-step Income Statement: It lists all revenues and expenses in a single section, subtracting total expenses from total revenues to determine net income. Selling costs are included as part of the expenses.

Eliminate incorrect options: The Statement of Cash Flows focuses on cash transactions, not revenues and selling costs. The Balance Sheet is a snapshot at a point in time, not over a period. The Statement of Retained Earnings tracks retained earnings, not revenues and selling costs.

Conclude that the correct financial statement for reporting revenues and selling costs over a period of time is the Single-step Income Statement.