On a multistep income statement, gains and losses are included in the calculation of operating income.

Name: On a multistep income statement, gains and losses are included in the calculation of operating income.
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Question

Quizplus · Accepted Answer

Gain and losses are NOT included in the calculation of operating income on a multistep income statement. Operating income is calculated by subtracting operating expenses from gross profit. Gains and losses are typically included in the calculation of net income or bottom-line profit.

On a Multistep Income Statement, Gains and Losses Are Included