N S I VE I N C O M E F O R

T O F C O M P R E H E
STATEMEN E R C H A N D IS IN G
C E B U S IN E S S A N D M
SERVI BUSINESS
WEEK 3
 OBJECTIVES

A.IDENTIFY THE PARTS OF STATEMENT OF COMPREHENSIVE INCOME FOR SERVICE

BUSINESS USING THE SINGLE-STEP APPROACH

B.PREPARE A STATEMENT OF COMPREHENSIVE INCOME FOR A SERVICE BUSINESS USING

THE SINGLE-STEP APPROACH

C.REFLECT ON THE IMPORTANCE OF PREPARING STATEMENT OF COMPREHENSIVE INCOME

FOR SERVICE BUSINESS
C. IDENTIFY THE PARTS OF THE STATEMENT OF COMPREHENSIVE INCOME FOR
MERCHANDISING BUSINESS USING THE MULTI-STEP APPROACH

D. PREPARE THE STATEMENT OF COMPREHENSIVE INCOME FOR A SERVICE BUSINESS USING

THE MULTI-STEP APPROACH

E. REFLECT ON THE IMPORTANCE OF PREPARING STATEMENT OF COMPREHENSIVE INCOME

FOR MERCHANDISING BUSINESS
 PR E–TEST

Directions: write the word true if the statement is correct and false if
the statement is wrong.
1. There is one approach in preparing the statement of comprehensive
income which is the single-step approach.
2. The single-step approach of the statement of comprehensive income
is called single-step because all revenues are listed down in one section
while all expenses are listed in another.
3. In preparing the statement of comprehensive income, expenses should be
listed first followed by revenue.

4. Net income is computed using a “single-step” which is total revenues plus

total expenses.
5. The statement of comprehensive income heading includes the name of the
company, the name of the statement, and the date covered.
 LESS ON

Have you experienced working or managing a small business?

Please share your experiences.
How did you feel after earning your income?
How did you compute your income or profit?
STATEMENT OF COMPREHENSIVE INCOME FOR SERVICE
BUSINESS
THE STATEMENT OF COMPREHENSIVE INCOME
INFORMS THE READER ABOUT THE PERFORMANCES
AND ACTIVITIES OF THE COMPANY FOR A CERTAIN
PERIOD. IT GENERALLY CONTAINS THE REVENUES AND
EXPENSES INCURRED BY AN ENTITY FOR THE
SPECIFIED PERIOD.
PREPARING THE STATEMENT OF COMPREHENSIVE INCOME USING THE SINGLE STEP
APPROACH
THE STATEMENT HEADING INCLUDES THE NAME OF THE COMPANY, THE NAME OF THE
STATEMENT, AND THE DATE COVERED. THE DATE OF THE STATEMENT OF COMPREHENSIVE
INCOME USE “FOR THE” BECAUSE THE AMOUNT IN THE SCI IS TEMPORARY, MEANING THAT
EACH PERIOD, AMOUNT GO BACK TO BEING ZERO TO START ALL OVER.
THIS IS THE TOTAL AMOUNT OF REVENUE THAT THE COMPANY WAS ABLE TO GENERATE
FROM PROVIDING SERVICES TO CUSTOMERS.
FROM THE WORKSHEET, LIST ALL THE EXPENSES AND GET THE TOTAL.
 What do you see in the picture?

What kind of business is this?

If you have this kind of business, how are

you going to compute for your net income?
• STATEMENT OF COMPREHENSIVE INCOME FOR MERCHANDISING BUSINESS USING THE
MULTI-STEP APPROACH

•A MERCHANDISING COMPANY SELLS GOODS TO CUSTOMERS AND THE MAIN COST

ASSOCIATED WITH THE ACTIVITY IS THE COST OF THE MERCHANDISE WHICH IS
PRESENTED UNDER THE LINE ITEM COST OF GOODS SOLD. IN PRESENTING THESE ITEMS
ON THE STATEMENT OF COMPREHENSIVE INCOME, A MERCHANDISING COMPANY WILL
PRESENT TOTAL SALES AND COST OF GOODS SOLD ON THE FIRST PART OF THE STATEMENT
WHICH WILL NET TO THE COMPANY’S GROSS PROFIT BEFORE PRESENTING THE OTHER
EXPENSES WHICH ARE CLASSIFIED AS EITHER ADMINISTRATIVE EXPENSES OR SELLING
EXPENSES (AS SEEN IN THE MULTI-STEP PROFORMA).
PREPARING THE STATEMENT OF COMPREHENSIVE INCOME FOR MERCHANDISING
BUSINESS USING MULTI-STEP APPROACH