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

An income statement which separately reports variable costs from fixed costs is known as a(n):

Contribution margin income statement

Multi-step income statement

Single-step income statement

Classified balance sheet

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Verified step by step guidance

Understand the concept of a contribution margin income statement: This type of income statement separates variable costs from fixed costs to highlight the contribution margin, which is the revenue remaining after deducting variable costs.

Review the structure of a multi-step income statement: This format separates operating revenues and expenses from non-operating items, but it does not specifically separate variable and fixed costs.

Examine the single-step income statement: This format lists all revenues and expenses in a single step without categorizing them into operating or non-operating, and it does not separate variable and fixed costs.

Understand the classified balance sheet: This is a financial statement that organizes assets, liabilities, and equity into categories, but it is not related to income statement formats.

Conclude that the correct answer is the contribution margin income statement, as it specifically separates variable costs from fixed costs to calculate the contribution margin.