An advantage of the single-step income statement is that it is less complex than the multistep form.

Question

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The single-step income statement presents all revenues and expenses in a simple format, making it easier to understand and less prone to errors or omissions. It subtracts all expenses from all revenues in one step, resulting in a net income or loss. In contrast, the multistep income statement includes more detailed sections, such as gross profit, operating expenses, and non-operating income or expenses, which can make it more difficult to analyze and prepare.

An Advantage of the Single-Step Income Statement Is That It