Table of contents

Skip topic navigation

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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Given the following information from a single-step income statement: Revenue = $100,000, Variable Costs = $20,000, Fixed Costs = $5,000. What is the income?

$80,000

$25,000

$100,000

$75,000

Previous problemNext problem

Verified step by step guidance

Step 1: Understand the single-step income statement format. In this format, income is calculated by subtracting total expenses (variable costs + fixed costs) from total revenue.

Step 2: Identify the given values from the problem: Revenue = $100,000, Variable Costs = $20,000, Fixed Costs = $5,000.

Step 3: Calculate the total expenses by adding Variable Costs and Fixed Costs. Use the formula: Total Expenses = Variable Costs + Fixed Costs. In MathML:

Total Expenses = Variable Costs + Fixed Costs

Step 4: Subtract the total expenses from the revenue to calculate the income. Use the formula: Income = Revenue - Total Expenses. In MathML:

Income = Revenue - Total Expenses

Step 5: Verify the calculation by ensuring all values are correctly substituted into the formulas and confirm the logical flow of the single-step income statement.