An Advantage of the Single-Step Income Statement Over the Multiple-Step

question 27

Multiple Choice

An advantage of the single-step income statement over the multiple-step form is

• A)the amount of information it provides.
• B)its comprehensiveness.
• C)its simplicity.
• D)its use in calculating ratios.

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Definitions:

Straight Salary

A fixed amount of pay given to an employee, not dependent on the hours worked or performance.

Over Insure

The condition of having insurance coverage that exceeds the value of the insured item or risk, leading to unnecessary higher premium costs.

Deductible

A sum specified in an insurance policy that the insured individual must pay before being compensated for a claim; deductibles reduce moral hazard.

Premium

The amount paid for an insurance policy, or the difference between the higher price paid for a fixed-income security above its face value.