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 are typically found on a single-step income statement?

Comprehensive income and accumulated other comprehensive income

Total revenues and total expenses

Gross profit and operating income

Earnings per share and retained earnings

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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, without breaking down categories like gross profit or operating income.

Review the components typically included in a single-step income statement: Focus on total revenues and total expenses, as these are the key elements used to determine net income.

Clarify why comprehensive income and accumulated other comprehensive income are not included: These items are part of the statement of comprehensive income, not the single-step income statement.

Explain why gross profit and operating income are excluded: These are detailed line items found in a multi-step income statement, not a single-step format.

Discuss why earnings per share and retained earnings are not part of the single-step income statement: Earnings per share is disclosed separately, often at the bottom of the income statement, and retained earnings are part of the statement of retained earnings or balance sheet.