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 items would be included on a single-step income statement?

Retained earnings

Total revenues and total expenses

Owner's capital contributions

Dividends paid

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Verified step by step guidance

Understand the purpose of a single-step income statement: It is a simplified format that reports total revenues and total expenses to calculate net income or net loss. It does not include detailed breakdowns or non-operational items.

Identify the components of a single-step income statement: The key elements are total revenues (e.g., sales revenue, service revenue) and total expenses (e.g., cost of goods sold, operating expenses). These are used to determine the net income or net loss.

Exclude items that are not part of the single-step income statement: Retained earnings, owner's capital contributions, and dividends paid are not included because they are part of the equity section of the balance sheet or statement of retained earnings, not the income statement.

Focus on the correct answer: Total revenues and total expenses are the only items relevant to a single-step income statement, as they directly contribute to the calculation of net income or net loss.

Review the format of the single-step income statement: Ensure that all revenues are summed up as 'Total Revenues' and all expenses are summed up as 'Total Expenses,' with the difference between the two representing net income or net loss.