Definition: A single step income statement is a financial statement format that lists all expenses including cost of good sold in one column. 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.

What is included on a single step income statement?

The single-step income statement is the format used to prepare an income statement where revenues, expenses, and net income are presented into a single subtotal. ... Those expenses include the cost of goods sold, operating expenses, and loss on revaluation.

What type of business uses single step income statement?

Smaller companies -- such as sole proprietorships, partnerships and service companies -- generally use the single-step format. Large companies sometimes provide single-step summary income statements even if they use the multi-step format for financial reporting.