Selected data from the accounting records of Cobb Company are listed below: $$\begin{array} { l r l r }
\text { General \& administrative expenses } & \$ 2,200 & \text { Operating revenues } & \$ 6,000 \
\text { Selling expenses } & 1,800 & \text { Incometaxes } & 600 \
\text { Other revenues (expenses) } & 800 & \text { Dividends paid } & 1,200
\end{array}$$
-Read the information about Cobb Company.By what amount will net income on a single-step income statement differ from net income on a multi-step income statement if Cobb Company prepares both formats?
A) $ 800
B) $ 600
C) $ 200
D) $ -0-

Question

Selected data from the accounting records of Cobb Company are listed below: $$\begin{array} { l r l r } 
\text { General \& administrative expenses } & \$ 2,200 & \text { Operating revenues } & \$ 6,000 \
\text { Selling expenses } & 1,800 & \text { Incometaxes } & 600 \
\text { Other revenues (expenses) } & 800 & \text { Dividends paid } & 1,200
\end{array}$$
-Read the information about Cobb Company.By what amount will net income on a single-step income statement differ from net income on a multi-step income statement if Cobb Company prepares both formats?
A) $ 800
B) $ 600
C) $ 200
D) $ -0-

Quizplus · Accepted Answer

The net income will be the same on both a single-step and a multi-step income statement because both formats ultimately calculate net income by subtracting total expenses and taxes from total revenues, regardless of how those revenues and expenses are categorized or presented.

Selected Data from the Accounting Records of Cobb Company Are