The more useful format for the income statement for external users is the single step because it discloses intermediate profit figures before reporting profit.

Question

Quizplus · Accepted Answer

The statement is incorrect. The more useful format for the income statement for external users is the multi-step format because it includes subtotals for gross profit, operating income, and net income, which provides more detailed and relevant information for decision making.

The More Useful Format for the Income Statement for External