Single-Step Income Statement
A single-step income statement is one of two commonly used formats for the income statement or profit and loss statement. The single-step format uses only one subtraction to arrive at net income.
An extremely condensed income statement in the single-step format would look like this:
The heading of the income statement conveys critical information. The name of the company appears first, followed by the title "Income Statement." The third line tells the reader the time interval reported on the profit and loss statement. Since income statements can be prepared for any period of time, you must inform the reader of the precise period of time being covered. (For example, an income statement may cover any one of the following time periods: Year Ended May 31, Five Months Ended May 31, Quarter Ended May 31, Month Ended May 31, or Five Weeks Ended May 31.)
A sample income statement in the single-step format would look like this: