Guide to Single-Step and Multi-Step Income Statements
This format clearly shows total revenue, total expenses, and net income without the complexity of multiple steps. An example of a single step income statement is Dana Incorporated’s Consolidated Statement of Operations for the calendar years ended December 31, 2021, 2020, and 2019. Many small businesses and larger companies prepare multi-step income statements. Single step vs multi step income statements means the difference between simple and detailed income statements. The net income line is calculated as Operating income less net Non-operating expenses. The Gross profit part of a multi step income statement shows Net Revenues (Net Sales and Net Service Revenues) minus Cost of goods sold. What does not show on a single-step income statement? Does GAAP allow for a single-step income statement? What is the use of a single-step…

