What Kind of Company or Business Would Use the Single-Step Income Statement? Chron com

This format is most commonly used by businesses that have relatively simple operations, with few line items reported. The second calculation subtracts the company's operating expenses, such as office supplies and advertising costs, to arrive at the operating income. This can be useful, as it only takes into account the items that have to do with the company's business activities, and excludes certain one-time costs and the performance of any investments the company holds. On the other hand, a multi-step income statement follows a three-step process to calculate the net income, and it segregates operating incomes and expenses from the...