All companies must conform to either a pure single-step format or a pure multistep income statement format.

Question

Quizplus · Accepted Answer

Companies have the flexibility to choose between a pure single-step format or a pure multistep format for their income statement, or to use a combination of both formats. The Financial Accounting Standards Board (FASB) does not require companies to follow a specific format for their income statement but does provide guidance on the information that should be included.

All Companies Must Conform to Either a Pure Single-Step Format