An income statement that includes cost of goods sold as another expense and shows only one subtotal for total expenses is a:
A)Balanced income statement.
B)Single-step income statement.
C)Multiple-step income statement.
D)Combined income statement.
E)Simplified income statement.

Question

Quizplus · Accepted Answer

A single-step income statement is a simplified format that groups all revenues and gains at the top of the statement and all expenses and losses at the bottom, without any further classification. This type of income statement includes cost of goods sold as another expense and shows only one subtotal for total expenses.

An Income Statement That Includes Cost of Goods Sold as Another