Ric,are the statements for your chosen company single or multi-step?
This week is our second week of discussing and analyzing the financial statements. In addition to looking at horizontal and vertical presentations, we have single and multi step statements. A single-step income statement only subtracts losses and expenses for net income.
| Net income = (Revenues + Gains) – (Expenses + Losses) |
In a multi-step income statement , there are multiple items subtracted to get to the net income shown. Therefore, significantly more information is presented.
All, what are the operating items on the income statement? What are examples of non-operating items on the income statement?
All, take a look at the article. After reading it, why did the AICPA eliminate them? What was decided and how would these items now be treated?
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