Question

A single-step income statement: Is not permitted when financial statements are prepared in accordance with generally accepted accounting principles. Reports the same amount of net income as that reported on a multiple-step income statement. Reports revenues and expenses, but not gains and losses. Always includes a gross profit subtotal. Never includes selling expenses.

Answer 1

Answer:

The correct answer is letter "B": Reports the same amount of net income as that reported on a multiple-step income statement.

Explanation:

The single-step income statement is a summarized report portraying a firm's revenue at the top, expenses at the bottom, and net income below expenses. It shows brief financial information compared to the multiple-step income statement which also includes the accounts from operating and non-operating activities.  

Though, even if the single and multiple-step income statements use different formats both must show the same net income of the organization.

Answer 2

Answer: A single-step income statement can be verified by which of the following formats?

Answer: It shows only one total for all expenses.

Explanation: see image for additional info