Single-step income statement definition including break down of areas in the definition. Analyzing the definition of key term often provides more insight about concepts. Single-step income statement can be defined as: Income statement format that subtracts total expenses, including cost of goods sold, from total revenues with no other subtotal. Single step income statement can be contrasted to a multiple step income statement, single step income statement being more simplified, single step income statement eliminating categories to provide just what is needed. A multiple step income statement differs from a single step income statement by adding more categories, categories that can provide more information but also make the statement more complicated. If we are looking to provide the big picture view a single step income statement is the way to go. A single step income statement is also used more is service businesses because they have less categories to break out.
