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Write a 500-1,000-word essay describing the difference between single-step income statements and multi-step income statements. Show examplesWhen preparing your financial statements for your business, one of the required statements, the first of three, is the Income Statement. This statement can be formatted in one of two formats. These two formats are the single-step and the multi-step format. As defined in the textbook, the single-step income statement is the “income statement format that groups all revenues together and then lists and deducts all expenses together without calculating any subtotals”. [CITATION Nob14 \p 298 \l 1033 ] The multi-step income statement is the “income statement format that contains subtotals to highlight significant relationships. In addition to net income, it reports gross profits and operating income”. [CITATION Nob14 \p 298 \l 1033 ]Which companies should use the singe-step and which should use the multi-step income statement? “Companies with specific business structures, such as corporations, must produce a multiple-step income statement, while other companies have the option of presenting a single-step income statement”. [ CITATION Ger15 \l 1033 ]