A multiple step income statement ________.
A) lists all the expenses together and calculates a total
B) has a subtotal for gross profit
C) has a subtotal for total assets
D) has a subtotal for total retained earnings

Question

Quizplus · Accepted Answer

A multiple step income statement includes multiple subtotals, one of which is for gross profit. It also includes other sections such as operating expenses, other income and expenses, and net income. Total assets and total retained earnings would not be subtotals on an income statement.

A Multiple Step Income Statement ________