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 reports the net income or loss for a specific period of time?

Balance Sheet

Statement of Retained Earnings

Single-step Income Statement

Statement of Cash Flows

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Verified step by step guidance

Understand the purpose of each financial statement: The Balance Sheet reports the financial position of a company at a specific point in time, the Statement of Retained Earnings shows changes in retained earnings over a period, the Statement of Cash Flows details cash inflows and outflows, and the Income Statement reports the net income or loss for a specific period.

Focus on the Income Statement: The Income Statement is specifically designed to summarize revenues and expenses, ultimately calculating the net income or loss for a given period.

Recognize the Single-step Income Statement: This format simplifies the reporting process by grouping all revenues together and subtracting all expenses to arrive at net income or loss.

Identify the time frame: The Income Statement always covers a specific period, such as a month, quarter, or year, making it distinct from the Balance Sheet, which is a snapshot at a single point in time.

Conclude that the Single-step Income Statement is the correct answer because it directly reports the net income or loss for a specific period of time.