A multi-step income statement_____.
A)includes information about retained earnings
B)is prepared only by corporations
C)includes a subtotal for gains and losses
D)includes a subtotal for gross profit

Question

Quizplus · Accepted Answer

A multi-step income statement includes a subtotal for gross profit, which is calculated by subtracting cost of goods sold from net sales. It also includes a subtotal for operating expenses, and often a subtotal for gains and losses, but not necessarily information about retained earnings. It can be prepared by any type of business, not just corporations.

A Multi-Step Income Statement_____