When a large number of line items limits the usefulness of the income statement, companies use a single-step income statement.

Name: When a large number of line items limits the usefulness of the income statement, companies use a single-step income statement.
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Quizplus · Accepted Answer

A single-step income statement is used for simplicity, not when there are too many line items. It combines all revenues and gains and all expenses and losses into single categories, rather than breaking them down into detailed line items.

When a Large Number of Line Items Limits the Usefulness