The difference between a single and multiple- step income statement is that:
A) a single- step income statement calculates net income using one method, whereas a multiple- step income statement calculates net income under two or more methods
B) a single- step income statement calculates gross profit and operating income, whereas a multiple- step income statement does not
C) a single- step income statement groups all revenues together and all expenses together, whereas a multiple- step income statement separates certain revenues and expenses from each other and presents subtotals
D) a single- step income statement shows only one year's net income, whereas a multiple- step income statement shows multiple years' net income

Question

Quizplus · Accepted Answer

A single-step income statement groups all revenues and expenses together, while a multiple-step income statement separates operating revenues and expenses from non-operating ones and provides subtotals like gross profit and operating income.

The Difference Between a Single and Multiple- Step Income Statement