A single-step format of the income statement will always have fewer sub-totals than the multi-step income statement format.

Question

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The single-step income statement format primarily consists of two categories: revenues and expenses, with a single subtraction to arrive at net income, resulting in fewer sub-totals compared to the multi-step format, which includes gross profit, operating income, and other intermediate totals.

A Single-Step Format of the Income Statement Will Always Have