Question

Describe the single-step income statement.

Short answer

A single-step income statement contains the operating and non-operating revenues and expenses and reflects thenet income of a business.

Step-by-step solution

Meaning of Income Statement

An income statement is one of the components of financial statements that describes the revenues and expenses during one accounting period. This report is prepared to ascertain the net profits or net losses.

Description of single-step income statement

A single-step income statement presents a simplified overview of a business entity'srevenues and expenses. It directly represents the net income of the entity in the bottom line and does not bifurcate theoperating and non-operating activities section.

It considers total revenues and expenses to compute the net income or net loss earned or incurred by the business during oneaccounting period.