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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following best describes the format of a single-step income statement for Armani Company for the year ended December 31?

All revenues are listed together, all expenses are listed together, and net income is calculated as total revenues minus total expenses.

Revenues are classified by operating and non-operating activities, and expenses are grouped by function.

Income from operations is calculated first, followed by other revenues and expenses, and then net income.

Operating revenues and expenses are separated from non-operating items, and gross profit is shown before operating expenses.

Previous problemNext problem

Verified step by step guidance

Understand the concept of a single-step income statement: A single-step income statement is a simplified format where all revenues are grouped together, all expenses are grouped together, and net income is calculated as the difference between total revenues and total expenses.

Compare the single-step income statement format to other formats: Unlike multi-step income statements, the single-step format does not separate operating and non-operating activities or show gross profit before operating expenses.

Analyze the options provided in the problem: Identify which option aligns with the single-step income statement format by focusing on the grouping of revenues and expenses and the calculation of net income.

Eliminate options that describe multi-step income statement formats: For example, options mentioning classifications like operating and non-operating activities or gross profit are indicative of multi-step formats, not single-step.

Select the correct description: The correct answer should describe the single-step format as grouping all revenues together, all expenses together, and calculating net income as total revenues minus total expenses.