- Income Statement
- Formats of Income Statements
- Principles of Revenue Recognition
- Revenue Recognition - Long-term Contracts
- Revenue Recognition - Instalment Sales
- Revenue Recognition - Barter Transactions
- Expense Recognition
- Inventory Expense Recognition
- Depreciation Expense Recognition
- Amortization Expense Recognition
- Bad Debt Expense and Warranty Expense Recognition
- Financial Reporting of Non-recurring Items
- Operating and Non-operating Components of Income Statement
- How to Calculate Basic Earnings Per Share (EPS)
- Impact of Stock Dividends and Stock Splits on Earnings Per Share (EPS)
- Diluted EPS
- Calculation of Diluted EPS (Convertible Preferred Stock)
- Calculation of Diluted EPS (Convertible Debt)
- Common Size Income Statement
- Performance Measures of a Company
- Comprehensive Income
Formats of Income Statements
An income statement can be presented in a single-step format or multi-step format.
In single-step format, all revenues are grouped together and all expenses are grouped together.
The following is an example of single-step format.
In multi-step format, there are multiple groups for expenses, such as cost of goods sold, operating expenses, and other expenses. Several subtotals are computed before the net income is calculated. We will see gross profits as well as net profits in the multi-step format. The income statement presented earlier for Innovative Products Inc. was in multi-step format. The following is another example of multi-step format income statement.
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