Gross profit and income from operations are reported on a multiple-step but not on a single-step income statement.

Question

Quizplus · Accepted Answer

Gross profit and income from operations are both calculated using multiple steps and require information from several sections of the income statement, including sales revenue, cost of goods sold, and operating expenses. Therefore, they are only reported on a multiple-step income statement and not on a simpler single-step statement that only shows total revenues and expenses.

Gross Profit and Income from Operations Are Reported on a Multiple-Step