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 are typically found on a single-step income statement?

Revenues and expenses

Assets and liabilities

Cash and accounts receivable

Owner's equity and dividends

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Verified step by step guidance

Understand the purpose of a single-step income statement: It is a financial statement that reports the revenues and expenses of a business to calculate net income or loss for a specific period. It does not include accounts related to the balance sheet, such as assets, liabilities, or equity.

Identify the components of a single-step income statement: The statement typically includes two main sections—revenues and expenses. Revenues represent the income earned from business operations, while expenses represent the costs incurred to generate those revenues.

Eliminate irrelevant accounts: Assets, liabilities, cash, accounts receivable, owner's equity, and dividends are not part of the single-step income statement. These accounts are found on the balance sheet or statement of retained earnings.

Focus on the correct accounts: Revenues and expenses are the only accounts that are typically found on a single-step income statement. These are used to calculate the net income by subtracting total expenses from total revenues.

Conclude the reasoning: Since the single-step income statement is designed to provide a straightforward calculation of net income, only revenues and expenses are included. Other accounts listed in the options belong to different financial statements.