The subtotal, gross profit, will be disclosed on
A)a multiple-step income statement
B)both multiple-step and single-step income statements
C)neither multiple-step nor single-step income statements
D)a single-step income statement

Question

Quizplus · Accepted Answer

The subtotal for gross profit is calculated using multiple steps in the income statement, therefore it will only be disclosed on a multiple-step income statement. It is not included in a single-step income statement, and there is no subtotal for gross profit in a statement that does not use multiple steps.

The Subtotal, Gross Profit, Will Be Disclosed on