For Garret Wolfe Company, the following information is available:

-In Garret Wolfe's single-step income statement, gross profit
A) should not be reported.
B) should be reported at $13,500.
C) should be reported at $40,000.
D) should be reported at $42,500.

Question

For Garret Wolfe Company, the following information is available:
 
-In Garret Wolfe's single-step income statement, gross profit
A) should not be reported. 
B) should be reported at $13,500. 
C) should be reported at $40,000. 
D) should be reported at $42,500.

Quizplus · Accepted Answer

In a single-step income statement, gross profit is not reported separately. Instead, all revenues are listed together, and all expenses are deducted from the total revenues to arrive at net income.

For Garret Wolfe Company, the Following Information Is Available