for now we are going to tell you about types of income statement.

it is divided into 2 different

types which are single step and multi step income and lets take a look at single step income
statement.

A single-step income statement presents the revenue, expenses and ultimately the profit or loss
generated by a business, but it reports on this information by using just one equation to
calculate profits. The equation used in a single-step income statement is:

Net Income = (Revenues + Gains) - (Expenses + Losses)

The single-step income statement offers a straightforward accounting of the financial activity of
your business. It’s easy to understand and relatively easy to prepare.
p
a single step income statement also has its two main sections: the first one is reporting revenie
and the second one is reporting expenses

The revenue category includes:

● Sales revenue
● Investment income
● Revenue from interest

while

the expenses category includes

● Cost of goods sold

● Depreciation
● Rent
● Utilities
● Employee salaries

and now we are going to talk about the multi step income statement