Profit from operations appears on
A)both a multiple-step and a single-step income statement.
B)neither a multiple-step nor a single-step income statement.
C)a single-step income statement only.
D)a multiple-step income statement only.

Question

Quizplus · Accepted Answer

Profit from operations is typically calculated as a subtotal on a multiple-step income statement, which shows the various components of revenue and expenses separately. It is not typically calculated or displayed on a single-step income statement, which simply shows total revenue minus total expenses to arrive at net income. Therefore, the correct answer is D, a multiple-step income statement only.

Profit from Operations Appears on