Answer
Advantages:
a. The single-step approach simplifies the presentation of the income statement.
b. The single-step method does not prioritize revenues and expenses; thus, it mitigates problems relating to their classification.
Disadvantages:
a. The single-step income statement does satisfactorily disclose particulars relating to various expenses.
b. The single-step income statement does not distinguish the operating and nonoperating transactions.
Work Step by Step
Advantages:
a. The single-step approach simplifies the presentation of the income statement.
b. The single-step method does not prioritize revenues and expenses; thus, it mitigates problems relating to their classification.
Disadvantages:
a. The single-step income statement does satisfactorily disclose particulars relating to various expenses.
b. The single-step income statement does not distinguish the operating and nonoperating transactions.
