Single-step Income Statement quiz #1 Flashcards
Single-step Income Statement quiz #1
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What is the primary purpose of a single-step income statement?
The primary purpose of a single-step income statement is to show total revenues, total expenses, and calculate net income by subtracting expenses from revenues. How are revenues and expenses presented in a single-step income statement?
All revenues are listed together first, followed by all expenses, and then net income is calculated as revenues minus expenses. Which accounts are considered revenues in a single-step income statement?
Sales revenue and service revenue are considered revenues in a single-step income statement. What is the total revenue if sales revenue is $300,000 and service revenue is $18,000?
The total revenue is $318,000. Which of the following is NOT considered an expense on a single-step income statement: wage expense, interest expense, dividends, or cost of goods sold?
Dividends are not considered an expense on a single-step income statement. List the expenses included in the example single-step income statement from the lesson.
The expenses are wage expense ($35,000), interest expense ($6,000), cost of goods sold ($180,000), income tax expense ($12,000), and other general and administrative expenses ($48,000). What is the total amount of expenses in the example single-step income statement?
The total expenses are $281,000. How is net income calculated in a single-step income statement?
Net income is calculated by subtracting total expenses from total revenues. What is the net income in the example if total revenues are $318,000 and total expenses are $281,000?
The net income is $37,000. Why are dividends not included as an expense in the single-step income statement?
Dividends are distributions to shareholders and not considered an operating expense. What is the main advantage of using a single-step income statement?
The main advantage is its simplicity, as it clearly shows total revenues, total expenses, and net income in a straightforward format. Is cost of goods sold considered an expense in a single-step income statement?
Yes, cost of goods sold is considered an expense. What is the formula for net income in a single-step income statement?
Net income = Total Revenues - Total Expenses. If a company has sales revenue of $200,000, service revenue of $50,000, and total expenses of $180,000, what is the net income?
Net income is $70,000. In a single-step income statement, where are general and administrative expenses reported?
General and administrative expenses are reported as part of total expenses. What is the first section shown in a single-step income statement?
The first section is total revenues. What is the last line item in a single-step income statement?
The last line item is net income. Are interest expenses included in the single-step income statement?
Yes, interest expenses are included as part of total expenses. If income tax expense is $12,000, how is it shown in the single-step income statement?
Income tax expense is listed as one of the expenses in the total expenses section. What distinguishes a single-step income statement from a multi-step income statement?
A single-step income statement groups all revenues and all expenses together, while a multi-step income statement separates operating and non-operating items.
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