Income Statement

Free CPA FAR (Financial Accounting & Reporting) lesson in Financial Reporting. 18 min read, ~2,669 words.

Single-step lumps all revenues and expenses; multi-step shows gross profit, operating income, nonoperating items, and pretax income subtotals, yet both tie to the same net income. Discontinued operations sit below continuing operations, net of tax, only for a strategic shift under ASC 205-20 (major line of business, geographic area, or...