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 statement shows a firm's profit after deducting all costs and expenses in a single-step format?

Statement of Retained Earnings

Balance Sheet

Statement of Cash Flows

Single-step Income Statement

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Verified step by step guidance

Understand the purpose of the Single-step Income Statement: It is a financial statement that shows a firm's profit or net income by subtracting all costs and expenses from total revenues in a straightforward manner.

Recognize the difference between the Single-step Income Statement and other financial statements: The Statement of Retained Earnings shows changes in retained earnings, the Balance Sheet provides a snapshot of assets, liabilities, and equity, and the Statement of Cash Flows tracks cash inflows and outflows.

Identify the structure of the Single-step Income Statement: It typically includes two main sections—revenues and expenses. Revenues are listed first, followed by all expenses, and the net income is calculated as the difference between the two.

Note that the Single-step Income Statement simplifies the presentation by not categorizing expenses into operating and non-operating sections, unlike the multi-step format.

Conclude that the Single-step Income Statement is the correct answer because it directly shows the firm's profit after deducting all costs and expenses in a single calculation.