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 shows a company's net income using a single subtotal for total revenues and total expenses?

Statement of Cash Flows

Balance Sheet

Single-step Income Statement

Statement of Retained Earnings

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Verified step by step guidance

Understand the purpose of each financial report mentioned in the problem: The Statement of Cash Flows shows cash inflows and outflows, the Balance Sheet provides a snapshot of assets, liabilities, and equity, and the Statement of Retained Earnings tracks changes in retained earnings. The Single-step Income Statement focuses on net income calculation.

Recognize that the Single-step Income Statement is designed to simplify the presentation of financial performance by using a single subtotal for total revenues and total expenses.

Learn the structure of the Single-step Income Statement: It lists all revenues together, followed by all expenses, and calculates net income as the difference between total revenues and total expenses.

Compare the Single-step Income Statement to other types of income statements, such as the multi-step format, which provides more detailed subtotals (e.g., gross profit, operating income). The single-step format is more straightforward and less detailed.

Conclude that the Single-step Income Statement is the correct answer because it directly calculates net income using a single subtotal for total revenues and total expenses, as described in the problem.