A single-step income statement includes cost of goods sold as another expense and shows only one subtotal for total expenses.

Name: A single-step income statement includes cost of goods sold as another expense and shows only one subtotal for total expenses.
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Question

Quizplus · Accepted Answer

A single-step income statement includes all the revenues and gains together and then deducts all the expenses and losses together, including cost of goods sold, to arrive at the net income. Therefore, it shows only one subtotal for total expenses.

A Single-Step Income Statement Includes Cost of Goods Sold as Another