A single-step income statement ________.
A)is the preferred method of reporting revenues,expenses,and cash because of the ease of preparation
B)groups all revenues together and shows all expenses deducted from total revenue
C)includes the subtotal Gross profit in the presentation
D)is preferred by business owners because the information presented is timely,and thus useful

Question

Quizplus · Accepted Answer

A single-step income statement groups all revenues together and shows all expenses deducted from total revenue. There is no subtotal for gross profit in this format. While it may be easier to prepare, it may not provide as much useful information as a multi-step income statement. Business owners may prefer timely information, but accuracy and completeness are also important factors to consider.

A Single-Step Income Statement ________