The difference between single-step and multiple-step income statements is primarily an issue of:
A) Consistency.
B) Presentation.
C) Measurement.
D) Valuation.

Question

Quizplus · Accepted Answer

The primary difference between single-step and multiple-step income statements is how they present the revenues, expenses, gains, and losses of a company. Single-step income statements list all revenues and gains together and all expenses and losses together, while multiple-step income statements categorize these items and provide subtotals such as gross profit, operating income, and net income. Therefore, the issue is one of presentation.

The Difference Between Single-Step and Multiple-Step Income Statements Is Primarily