BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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single-step
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multi-step
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business
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merchandise
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Detailed explanation-1: -Single-Step Income Statements All revenues and gains are totaled at the top of the statement, while all expenses and losses are totaled at the bottom. This simplified approach makes record-keeping easier for both the accountants who prepare the statements and the investors who read them.
Detailed explanation-2: -There are two different types of income statement that a company can prepare such as the single-step income statement and the multi-step income statement.
Detailed explanation-3: -The multi-step income statement is used to report revenue and expense activities for a merchandising business. It is an expanded, more detailed version of the single-step income statement. The most significant cost that a merchandise business incurs is the cost of acquiring the inventory that is sold.