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Unformatted text preview: and multi- step formats. In the single step approach, there are three pieces of information to consider. These include revenues, expenses, and net income. The only step that this format includes is that expenses are subtracted from revenues. The multi- step format separates operating and non-operating activities as well as classifying expenses by functions. The main differences in single and multi-step are that the single is easy to prepare and focuses on the bottom line, and the multi-step is more detailed and the common financial roles can be easily calculated. One thing I did not know was that gross profit percentage ratio can not be determined by using the single step method.I also did not know that income before taxes can only be found on the multi-step income statement....
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This note was uploaded on 06/17/2011 for the course ACCOUNTING FINANCIAL taught by Professor Kirk during the Spring '11 term at University of Phoenix.
- Spring '11