Question

An advantage of the single-step income statement over the multiple-step form is:______. a. its use in computing ratios. b. the amount of information it provides. c. its simplicity. d. its comprehensiveness.

Answer 1

Answer:

c. its simplicity

Explanation:

In the single-step income statement, we can directly compute the net income or net loss like

All revenues                        XXXXX

Less: All expenses              XXXXX

Net income or (net loss)     XXXXX

But in the multi-step income statement, there are various steps like gross profit, operating income, non operating income, and finally, net income arrive

Therefore, the income statement is easy to make and easy to understand due to its simplicity