Bellweather Times
The company reports the following balances:
$$\begin{array} { l l l l }
\text { Other revenue } & \$ 180,000 & \text { General and administrative expense } & \$ 320,000 \
\text { Dividends paid } & \$ 220,000 & \text { Operating revenues } & \$ 700,000 \
\text { Selling expenses } & \$ 280,000 & \text { Income tax expense } & \$ 60,000
\end{array}$$
-Refer to the figure Bellweather Times.By what amount will net income on a single-step income statement differ from net income on a multiple-step income statement if the company prepares both formats?

Question

Bellweather Times
The company reports the following balances:
 $$\begin{array} { l l l l } 
\text { Other revenue } & \$ 180,000 & \text { General and administrative expense } & \$ 320,000 \
\text { Dividends paid } & \$ 220,000 & \text { Operating revenues } & \$ 700,000 \
\text { Selling expenses } & \$ 280,000 & \text { Income tax expense } & \$ 60,000
\end{array}$$
-Refer to the figure Bellweather Times.By what amount will net income on a single-step income statement differ from net income on a multiple-step income statement if the company prepares both formats?

Quizplus · Accepted Answer

The difference between a single-step and multiple-step income statement lies in the presentation of operating and non-operating revenues and expenses. However, since there are no non-operating items reported in the figure provided, net income will be the same on both formats. Therefore, the answer is A, $0.

Bellweather Times the Company Reports the Following Balances -Refer to the Figure Bellweather Times

Bellweather Times
the Company Reports the Following Balances -Refer to the Figure Bellweather Times