Is the only difference between the multistep income stmt and the single step income stmt, that the multistep calculated Gross profit out and single step does not. This is the only thing I can find. Other than that what is the point??
yea dats d most of it…multistep income statement will show sales-cogs=groos pft and on n on …bt a single step will simply show a single sale… for eg… a travel agent sold a ticket to a client worth 1000 for 1200 out of which his commision is 200…in multistep he will show sales of 1200 and cogs of 1000 and income of 200 whereas in a single step he will show jus sales worth 200…hence if u use multistep, sales are increased in a misleading way. although there are rules under wat conditions u can show a multistep income statement like u should bear d credit risk, have authority to set the price of the product, be able to select the supplier and i guess der are a couple of more conditions to it…
What you are describing is gross report vs. net reporting. Gross report has a lower gross profit marging than net reporting. I guess when you think about it they are kind of the same thing in report format