A single-step income statement is a type of financial statement used to report a company’s revenues and expenses in a straightforward manner. It presents all revenues and gains on one side and all expenses and losses on the other, without categorizing them into multiple sections. The total revenues and gains are then subtracted from the total expenses and losses to arrive at the net income or net loss. This statement is relatively simple and easy to understand, making it suitable for smaller businesses with less complex financial operations. However, for larger companies with more diverse revenue streams, a multi-step income statement is often preferred for better analysis and presentation.