What is an advantage of using the multiple-step income statement?
A)It highlights the components of net income.
B)Gross profit is not a separate item.
C)It is easier to prepare than the single-step income statement.
D)Net income will be higher than net income computed using the single-step income statement.

Question

Quizplus · Accepted Answer

The multiple-step income statement provides detailed information by separating operating revenues and expenses from non-operating ones, highlighting components like gross profit, operating income, and net income.

What Is an Advantage of Using the Multiple-Step Income Statement