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 is true about a single-step income statement?

It requires the calculation of income from operations before other revenues and expenses.

It lists gross profit as a separate line item before operating expenses.

It groups all revenues together and all expenses together, showing only one step to calculate net income.

It separates operating and non-operating activities in different sections.

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Verified step by step guidance

Understand the concept of a single-step income statement: A single-step income statement is a simplified format that groups all revenues together and all expenses together, without separating operating and non-operating activities.

Recognize the key feature of a single-step income statement: It calculates net income in one step by subtracting total expenses from total revenues, without requiring intermediate calculations like gross profit or income from operations.

Compare the single-step income statement to other formats: Unlike a multi-step income statement, it does not list gross profit as a separate line item or require the calculation of income from operations before other revenues and expenses.

Identify the correct statement: The single-step income statement groups all revenues together and all expenses together, showing only one step to calculate net income.

Conclude that the single-step income statement does not separate operating and non-operating activities into different sections, as it focuses on simplicity and clarity in presenting financial results.