Gross profit does not appear
A)on a multiple-step statement of income.
B)on a single-step statement of income.
C)to be relevant in analyzing the operation of a merchandising company.
D)on either a multiple-step or a single-step statement of income.

Question

Quizplus · Accepted Answer

Gross profit appears on a multiple-step income statement, which separates operating revenues and operating expenses from non-operating revenues, non-operating expenses, gains, and losses, providing a gross profit figure. A single-step income statement, however, does not separate these figures and instead lists all revenues and subtracts all expenses together, without specifically showing a gross profit line.

Gross Profit Does Not Appear