Which of the following statements about a multistep income statement is correct?
A)It groups all revenues together.
B)It reports a different amount of net income than a single-step income statement.
C)It includes expenses that would not appear on a single-step income statement.
D)A key measure available on a multistep income statement is the amount of profit earned over the cost of goods sold.

Question

Quizplus · Accepted Answer

A key measure available on a multistep income statement is the amount of profit earned over the cost of goods sold.The multistep format separates the revenues and expenses that relate to core operations from all the other (peripheral)items that affect net income.Multiple-step and single-step statements report all the same revenues and expenses and,so,the net income is the same.

Which of the Following Statements About a Multistep Income Statement