Video: Single-Step Income Statement

In this lesson, Nick Palazzolo, CPA, breaks down the simplicity and structure of the single-step income statement. He walks through an example, demonstrating how expenses are subtracted from revenues in a clear and straightforward manner. While emphasizing the form's ease of reading and comprehension, Nick acknowledges its rarity in the real world, suggesting it might be more applicable to smaller companies or to provide a simplified financial picture to potential investors not well-versed in accounting. The lesson underscores the importance of understanding this format, despite the prevalence of the more detailed multi-step income statement in both practice and on the exam.