The list below contains several items that appear on a multiple-step income statement.
1.other income and expense
2.income before income taxes
3.net income
4.operating expenses
5.gross margin
6.net sales
7.income from operations
Select the choice that lists the items in the order they would appear on a multiple-step income statement.
A)6, 5, 4, 7, 1, 2, 3
B)7, 6, 1, 4, 2, 3, 5
C)6, 5, 4, 1, 7, 2, 3
D)6, 7, 4, 1, 2, 3, 5

Question

Quizplus · Accepted Answer

The correct order on a multiple-step income statement is: net sales (6), gross margin (5), operating expenses (4), income from operations (7), other income and expense (1), income before income taxes (2), and finally net income (3).

The List Below Contains Several Items That Appear on a Multiple-Step