Multistep income statements:
A)are required for merchandise companies.
B)contain more detail than just listing revenues and expenses.
C)are required when the perpetual inventory method is used.
D)classify Cost of Goods Sold as a selling expense.

Question

Quizplus · Accepted Answer

Multistep income statements provide subtotals for gross margin,income from operations,and income before income taxes.To show how much profit is earned from product sales,without being clouded by other operating costs,merchandise companies often present their income statement using a multistep format.

Multistep Income Statements