Which of the following describes a multiple-step income statement?
A) It is a format that contains subtotals to highlight significant relationships.
B) It is a format that groups all revenues together and then lists and deducts all expenses together without subtotals.
C) Both of the above describe a multiple-step income statement.
D) Neither of the above describes a multiple-step income statement.

Question

Quizplus · Accepted Answer

A multiple-step income statement includes subtotals such as gross profit, operating income, and income before taxes, which help in analyzing the financial performance more deeply than a single-step income statement, which groups all revenues and expenses together without subtotals.

Which of the Following Describes a Multiple-Step Income Statement