A multiple-step income statement shows
A)gross profit but not profit from operations.
B)neither gross profit nor profit from operations.
C)both gross profit and profit from operations.
D)profit from operations but not gross profit.

Question

Quizplus · Accepted Answer

A multiple-step income statement shows both gross profit and profit from operations. It presents a detailed breakdown of revenues and expenses, allowing for a clearer understanding of a company's financial performance. The gross profit is calculated by subtracting the cost of goods sold from net sales, while the profit from operations is calculated by subtracting all operating expenses from gross profit.

A Multiple-Step Income Statement Shows