The type of income statement that classifies items as operating and nonoperating is the ______ income statement.

Question

Quizplus · Accepted Answer

The type of income statement that classifies items as operating and nonoperating is the multiple-step income statement. This statement separates operating revenues and expenses from nonoperating items such as gains or losses from investments or discontinued operations. It provides a more detailed view of a company's financial performance than a simple, one-step income statement. Consolidated and classified income statements do not necessarily classify items as operating and nonoperating.

The Type of Income Statement That Classifies Items as Operating