The primary advantage of the multiple-step format lies in the simplicity of presentation and the absence of any implication that one type of revenue or expense item has priority over another.

Question

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The statement is incorrect. The primary advantage of the multiple-step format is that it provides more detailed information about the different components of revenue and expenses, thereby helping users to analyze the financial performance of the company more comprehensively.

The Primary Advantage of the Multiple-Step Format Lies in the Simplicity