A single-step income statement for a merchandising firm:
A) Shows a different net income amount than a multiple-step income statement
B) May not be used because it is an unacceptable reporting format
C) Does not show a gross profit on sales amount
D) None of the above

Question

Quizplus · Accepted Answer

A single-step income statement does not separate operating revenues and expenses from non-operating ones, and it does not show a gross profit on sales, as it combines all revenues and expenses into a single total.

A Single-Step Income Statement for a Merchandising Firm