The income statement comes in two basic formats, the multiple-step and the single-step versions; however, for analysis purposes the single-step version should be used.

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For analysis purposes, both the multiple-step and single-step versions of the income statement can be used. It depends on the specific needs of the analyst. However, the single-step format is simpler and easier to understand, which may make it more practical for some users.

The Income Statement Comes in Two Basic Formats, the Multiple-Step