Use of a multiple-step income statement will result in the company reporting a higher net income than if they used a single-step income statement.

Question

Quizplus · Accepted Answer

The use of a multiple-step income statement actually breaks down the company's revenue and expenses into different categories, allowing for a more detailed analysis. However, it does not result in a higher net income; it simply provides a clearer picture of where the company's revenue and expenses are coming from.

Use of a Multiple-Step Income Statement Will Result in the Company