A single step income statement is a format in which only one computation is needed to determine the net income. Some advantages of a single step income statement in businesses with simple structures, such as sole proprietorships and partnerships, often see numerous advantages in using the single step income statement. The simplified statement shows the expenses in a single line for net income,, rather than breaking up the results by gross profit and operating profit. This makes accounting a little less complicated for the accountant who has to prepare the statements." We all know that there is also a multi step income statement as well. In what situations would using a multi step be better than a single step income statement? What is the true purpose of having the 2 different types of statements?