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Asked by Andrea Lopez on Apr 26, 2024

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Explain the difference between the single-step and multiple-step income statements.

Single-Step Income Statement

An income statement format that lists all revenues and then deducts all expenses to find the net income with only one subtraction.

Multiple-Step Income Statement

A detailed income statement that separates operational revenue and expenses from non-operational ones, presenting a clear view of a company’s operational efficiency.

Income Statements

A financial statement that shows a company’s revenues, expenses, and profits or losses over a specific period.

  • Comprehend the structure and differences between single-step and multiple-step income statements.
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Cynthia HesslerMay 03, 2024
Final Answer :
A single-step income statement format includes cost of goods sold as another expense,and shows only one subtotal for total expenses.The calculation of net income is simply total revenues minus total expenses.A multiple-step income statement format shows detailed computation of net sales and other costs and expenses,and reports subtotals for various classes of items.

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