Which income statement format is the most useful for predicting future results and evaluating and analyzing past performance?
A)Classified income statement
B)Single step income statement
C)Unclassified income statement
D)Multi-step income statement

Question

Quizplus · Accepted Answer

The multi-step income statement provides more detail and separates various components of revenue and expenses, giving a clearer picture of a company's past performance and potential future results. It also includes important measures such as gross profit and operating income, which can aid in analysis and decision-making.

Which Income Statement Format Is the Most Useful for Predicting