What are the two basic formats of the income statement?
A) Multiple-step and single-step.
B) Cash basis and single-step.
C) Accrual basis and single-step.
D) Accrual basis and multiple-step.

Question

Quizplus · Accepted Answer

The two basic formats of the income statement are multiple-step and single-step. The multiple-step format separates operating revenues and expenses from non-operating ones, while the single-step format sums all revenues and subtracts all expenses together without categorizing them.

What Are the Two Basic Formats of the Income Statement