Which of the following appears in different sections of the income statement when prepared on a single-step basis and when prepared on a multistep basis?
A)Sales commissions.
B)Office salaries.
C)Interest income.
D)Sales.

Question

Quizplus · Accepted Answer

Interest income is typically shown in a different section on the income statement when comparing single-step and multi-step formats. In a single-step income statement, all revenues and gains are grouped together, including interest income. In a multi-step income statement, interest income is often shown separately under other income or as a part of non-operating income, distinguishing it from operating revenues like sales.

Which of the Following Appears in Different Sections of the Income