The multiple-step statement of income is considered more useful than the single-step statement of income for a merchandising company because it highlights the components of net income.

Question

Quizplus · Accepted Answer

The multiple-step income statement separates operating revenues and expenses from non-operating ones and distinguishes between cost of goods sold and operating expenses, providing a detailed view of the components of net income, which is particularly useful for analysis in a merchandising company.

The Multiple-Step Statement of Income Is Considered More Useful Than