An income statement on which the cost of goods sold, and operating expenses are added together and subtracted from net sales in one step to get profit is a(n)

Question

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A single-step income statement is one in which all expenses (including cost of goods sold and operating expenses) are subtracted from net sales in one step to arrive at the final profit number. This is the simplest form of income statement and is commonly seen in small businesses or for internal reporting purposes. The other options (balanced income statement, multiple-step income statement, merchandise income statement, and unclassified income statement) are all variations of income statements that provide more detail about the components of revenue and expenses.

An Income Statement on Which the Cost of Goods Sold