객관식
Which one of the following statements related to a single-step income statement is correct?
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4. Merchandising Operations
Single-step Income Statement
객관식
Which financial report tracks the total revenues and expenses to determine the net income or loss of a business for a specific period, using a single subtotal for total revenues and a single subtotal for total expenses?
A
Balance Sheet
B
Single-step Income Statement
C
Statement of Retained Earnings
D
Statement of Cash Flows
검증된 단계별 안내1
Understand the purpose of the financial report in question: It is designed to track the total revenues and expenses to determine the net income or loss of a business for a specific period.
Recognize that the report uses a single subtotal for total revenues and a single subtotal for total expenses, which simplifies the calculation of net income or loss.
Learn the name of the financial report that matches this description: It is called the Single-step Income Statement.
Differentiate the Single-step Income Statement from other financial reports: For example, the Balance Sheet shows assets, liabilities, and equity at a specific point in time, while the Statement of Retained Earnings tracks changes in retained earnings, and the Statement of Cash Flows reports cash inflows and outflows.
Conclude that the Single-step Income Statement is the correct answer because it directly calculates net income or loss by subtracting total expenses from total revenues in a straightforward manner.
