Final answer:
The statement is true; the single-step income statement first lists all revenues and gains, followed by expenses and losses, to calculate net income or loss in a straightforward manner.
Step-by-step explanation:
The question pertains to the format of an income statement in accounting, specifically whether the single-step format of the income statement begins by listing all revenues and gains included in the income from continuing operations. In response to the statement, it is True that the single-step income statement format starts by listing all revenues and gains. It then follows with expenses and losses.
The single-step method is named for its simplistic approach, characterizing just two categories: total revenues (including gains) and total expenses (including losses). This simple computation yields the net income or loss.
The elementary formula used, which highlights the fundamental business goal, is Profit = Total Revenue - Total Cost. This concept traces back to the basic principles of business, where every entity seeks to create a surplus of income over expenses to achieve profitability. The single-step income statement succinctly reflects this by subtracting total expenses directly from total revenues in a single step, thereby presenting the net result as either net income or net loss.
This format is favored for its clarity and straightforwardness, especially useful for smaller businesses with simpler operations. However, it does not provide as much detail as the multi-step income statement, which separates operating revenue and expenses from non-operating ones and highlights gross profit by subtracting cost of goods sold from sales revenue.