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 of the following are the two primary formats for preparing a business income statement?

Single-step and multiple-step formats

Direct and indirect formats

Accrual and cash basis formats

Periodic and perpetual formats

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Understand the purpose of an income statement: It is a financial report that shows a company's revenues, expenses, and profits over a specific period.

Recognize the two primary formats for preparing an income statement: Single-step and multiple-step formats. These are widely used in financial accounting.

Learn about the single-step format: This format groups all revenues together and subtracts all expenses to calculate net income. It is straightforward and easy to prepare.

Learn about the multiple-step format: This format separates operating revenues and expenses from non-operating items, providing a more detailed view of a company's financial performance. It includes subtotals like gross profit and operating income.

Differentiate these formats from other accounting methods or systems mentioned in the options, such as direct/indirect formats (used in cash flow statements), accrual/cash basis formats (accounting methods), and periodic/perpetual formats (inventory systems).