What are the two formats for preparing the business income statement?

Answer:

single step and multi step

Step-by-step explanation:

Single step consists of only revenues and expenses.

Multi step consists of gross profit, operating profit, and net income

Answer:

Single Step and a Multiple Step

Step-by-step explanation:

A single-step income statement gives a company’s revenue and expenses in a simplified form, which is easier for accountants to prepare and for investors to read. It shows revenues and gains at the top of the statement, with expenses and losses at the bottom. While easy to understand, single-step income statements are not very detailed. Some investors may find it difficult to determine where the company incurred most of its expenses from this basic outline. This makes it unclear whether the company will be sustainable enough to thrive, and it may make some investors less likely to invest capital in the company.

A multiple-step income statement gives a better representation of the costs of goods sold. It also gives investors a better idea of how a company operates and whether that operational structure is sustainable and potentially profitable. But multiple-step income statements can take much time and effort to prepare. The choice between preparing a single- and multiple-step income statement will depend on the resources the company has, and on the needs and demands of its stakeholders.