The multiple-step income statement is considered more useful than the single-step income statement for a merchandising company because it highlights the components of profit.

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The multiple-step income statement of a merchandising company provides information about gross profit, operating expenses, and net income. This breakdown helps to analyze the performance of different aspects of the company's operations, making it more useful than the simple one-step income statement.

The Multiple-Step Income Statement Is Considered More Useful Than the Single-Step