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 accounts will be found on a single-step income statement?

Service Revenue

Accounts Receivable

Dividends

Prepaid Insurance

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Verified step by step guidance

Understand the purpose of a single-step income statement: It is used to report revenues and expenses in a straightforward manner, calculating net income by subtracting total expenses from total revenues.

Identify the types of accounts typically included in a single-step income statement: Only revenue and expense accounts are included, as the focus is on the company's operational performance during a specific period.

Analyze the given accounts: Service Revenue is a revenue account, which is included in the income statement. Accounts Receivable, Dividends, and Prepaid Insurance are not revenue or expense accounts; they are balance sheet accounts or equity-related accounts.

Confirm that Service Revenue is the correct account to be included in the single-step income statement, as it represents income earned from providing services.

Exclude Accounts Receivable, Dividends, and Prepaid Insurance from the single-step income statement, as they do not represent revenues or expenses directly related to the company's operations.