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 type of income statement provides a summary of revenues and expenses without detailing individual components?

Statement of retained earnings

Classified balance sheet

Single-step income statement

Multi-step income statement

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Verified step by step guidance

Understand the purpose of an income statement: It is a financial report that summarizes a company's revenues and expenses over a specific period, showing the net income or loss.

Learn about the types of income statements: Single-step and multi-step income statements are two common formats used to present financial data.

Define a single-step income statement: This type of income statement provides a straightforward summary of revenues and expenses without breaking them down into detailed categories or components. It calculates net income by subtracting total expenses from total revenues.

Compare with a multi-step income statement: A multi-step income statement provides more detailed information by separating operating revenues and expenses from non-operating items, and it calculates subtotals such as gross profit and operating income.

Recognize the correct answer: Based on the definitions, the single-step income statement is the type that summarizes revenues and expenses without detailing individual components.