Which of the following is not a true statement about a multiple-step income statement?
A) Operating expenses are similar for merchandising and service enterprises.
B) There may be a section for nonoperating activities.
C) There may be a section for operating assets.
D) There is a section for cost of goods sold.

Question

Quizplus · Accepted Answer

A multiple-step income statement does not have a section for operating assets. It typically includes sections for operating revenues, cost of goods sold, gross profit, operating expenses, nonoperating revenues and expenses, and income tax expense.

Which of the Following Is Not a True Statement About