One of the primary benefits of the multiple-step income statement over the single-step income statement is that the multiple-step income statement
A) shows gross margin and recognizes different types of costs and expenses.
B) shows last year's figures in comparison with the current year.
C) discriminates between administrative and selling expenses.
D) recognizes no distinction in types of costs or expenses.

Question

Quizplus · Accepted Answer

The multiple-step income statement separates operating revenues and operating expenses from non-operating revenues, non-operating expenses, gains, and losses, providing a gross margin figure and distinguishing between different types of costs and expenses, such as cost of goods sold, administrative expenses, and selling expenses.

One of the Primary Benefits of the Multiple-Step Income Statement