Ortiz Co. had the following account balances: What would Ortiz report as total expenses in a single-step income statement?
A) $210,500
B) $221,000
C) $204,500
D) $ 94,500

Question

Ortiz Co. had the following account balances:  What would Ortiz report as total expenses in a single-step income statement?
A) $210,500 
B) $221,000 
C) $204,500 
D) $ 94,500

Quizplus · Accepted Answer

In a single-step income statement, all expenses are grouped together and deducted from total revenues.

Total expenses = Cost of Goods Sold + Operating Expenses
= $155,000 + $49,500
= $204,500

Therefore, the correct answer is C) $204,500.

Ortiz Co Had the Following Account Balances: What Would Ortiz