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 report displays a business's profit and loss in a summarized, single-step format?

Statement of Retained Earnings

Single-step Income Statement

Balance Sheet

Statement of Cash Flows

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Verified step by step guidance

Understand the purpose of each financial report mentioned in the problem: The Statement of Retained Earnings shows changes in retained earnings over a period, the Balance Sheet provides a snapshot of assets, liabilities, and equity, and the Statement of Cash Flows details cash inflows and outflows. The Single-step Income Statement summarizes revenues and expenses to calculate net income.

Recognize that the Single-step Income Statement is designed to present a business's profit and loss in a straightforward format, focusing on total revenues minus total expenses to arrive at net income.

Note that the Single-step Income Statement does not categorize expenses into operating and non-operating sections, unlike the multi-step format. This makes it simpler and more direct for users to understand the financial performance.

Identify that the Single-step Income Statement is ideal for businesses that prefer a concise and easy-to-read format, especially when detailed breakdowns of expenses are not necessary.

Conclude that the correct financial report displaying a business's profit and loss in a summarized, single-step format is the Single-step Income Statement.