Single Step Income Statement Gross Profit

The total of all revenues incomes and gains minus the total of all expenses and losses.

Single step income statement gross profit. Gross profit is an important metric because it shows how efficiently a business uses labor and supplies to generate revenue. A single step income statement offers a simplified snapshot of a company s revenue and expenses. In other words the single step income statement presentation doesn t break expenses out into categories like cost of goods sold operating non operating and other. Unlike a single step income statement multi step income statements report on gross profit.

An income statement is an accounting document that summarizes the net profit or loss of a company by subtracting the expenses from the income. All of the expenses are listed together and totaled.