Which income statement format is preferred by most owners and managers of small businesses?
A)Single-step
B)Multiple-step
C)Revenue-only
D)Retained earnings

Question

Quizplus · Accepted Answer

The multiple-step income statement format is preferred by most owners and managers of small businesses because it provides more details and information about the business's financial performance. It allows for the separation of operating and non-operating revenue and expenses, which can help in identifying areas of the business that need improvement or adjustment. The multiple-step format also includes gross profit, operating income, and net income, which are important metrics for evaluating a business's profitability.

Which Income Statement Format Is Preferred by Most Owners and Managers