Which of the following is an acceptable method of presenting the income statement?
A)A single-step income statement
B)A multiple-step income statement
C)A consolidated statement of income
D)All of these

Question

Quizplus · Accepted Answer

All three methods are acceptable ways of presenting the income statement. The choice of method depends on the preferences of the company and the level of detail it wants to present. A single-step income statement is a simpler format that presents all revenues and expenses in one category. A multiple-step income statement provides more detail by separating the operating and non-operating revenues and expenses. A consolidated statement of income is used when a company has multiple subsidiaries or divisions and wants to combine their financial results into one statement.

Which of the Following Is an Acceptable Method of Presenting