The multiple-step format of the income statement reports a series of intermediate subtotals such as gross profit, operating income, and income before taxes.

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This statement is true. The multiple-step format of the income statement provides a detailed presentation of key financial figures that are used to evaluate a company's profitability and financial health. Intermediate subtotals, such as gross profit, operating income, and income before taxes, allow investors and analysts to better understand the company's performance and identify areas of strength or weakness.

The Multiple-Step Format of the Income Statement Reports a Series