Which of the following describes a single-step income statement?
A) It is a format that contains subtotals to highlight significant relationships.
B) It is a format that groups all revenues together and then lists and deducts all expenses together without subtotals.
C) Both of the above describe a single-step income statement.
D) Neither of the above describes a single-step income statement.

Question

Quizplus · Accepted Answer

A single-step income statement is characterized by its simplicity, grouping all revenues and gains together and then listing all expenses and losses together, without breaking down the data into more detailed subcategories or providing subtotals.

Which of the Following Describes a Single-Step Income Statement