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 report tracks the total revenues and expenses to determine the net income or loss of a business for a specific period, using a single subtotal for total revenues and a single subtotal for total expenses?

Balance Sheet

Single-step Income Statement

Statement of Retained Earnings

Statement of Cash Flows

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Verified step by step guidance

Understand the purpose of the financial report in question: It is designed to track the total revenues and expenses to determine the net income or loss of a business for a specific period.

Recognize that the report uses a single subtotal for total revenues and a single subtotal for total expenses, which simplifies the calculation of net income or loss.

Learn the name of the financial report that matches this description: It is called the Single-step Income Statement.

Differentiate the Single-step Income Statement from other financial reports: For example, the Balance Sheet shows assets, liabilities, and equity at a specific point in time, while the Statement of Retained Earnings tracks changes in retained earnings, and the Statement of Cash Flows reports cash inflows and outflows.

Conclude that the Single-step Income Statement is the correct answer because it directly calculates net income or loss by subtracting total expenses from total revenues in a straightforward manner.