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 summarizes a company's revenues and expenses to show net income for a specific period, using a single-step approach?

Single-step Income Statement

Balance Sheet

Statement of Retained Earnings

Statement of Cash Flows

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Verified step by step guidance

Understand the purpose of each financial statement: The Single-step Income Statement summarizes revenues and expenses to calculate net income for a specific period. The Balance Sheet shows a company's financial position at a point in time, the Statement of Retained Earnings tracks changes in retained earnings, and the Statement of Cash Flows reports cash inflows and outflows.

Focus on the Single-step Income Statement: This approach simplifies the calculation of net income by subtracting total expenses from total revenues without categorizing expenses into operating and non-operating sections.

Identify the components of the Single-step Income Statement: Revenues include all income generated from business operations, while expenses include all costs incurred during the period.

Understand the calculation process: Net income is calculated using the formula:

Net Income = Total Revenues - Total Expenses

. This straightforward approach avoids detailed classifications.

Recognize the reporting period: The Single-step Income Statement is prepared for a specific period, such as a month, quarter, or year, to provide a snapshot of financial performance during that time.