Some companies use a single-step income statement, which totals revenues and gains (sales, other income, etc.) and then deducts total expenses and losses (cost of goods sold, operating expenses, other expenses, etc.). A simplified single-step income statement is similar to below:
As an owner responsible for the creation of your financial statements, it key to understand the set-up of your companies income statement.
This example, shows all revenues and gains and then lists all expenses and losses. Total expenses and loss items deducted from total revenue and gain items determine the net income.
Ideas are easy. Implementation is hard." - Gary Kawasaki, founder of AllTop
Source: Financial Reporting and Analysis 12E
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