Which of the following statements related to the multiple-step income statement is not true?
A)Subtotals for total selling expenses and general and administrative expenses are reported.
B)Interest revenue is included with other revenue and gains.
C)The first section of the statement reports gross profit.
D)Shows only one total for expenses.
E)Nonoperating items are reported separately from operations.

Question

Quizplus · Accepted Answer

This statement is not true because the multiple-step income statement reports subtotals for various categories of expenses, such as selling expenses and general and administrative expenses, before reporting a total for expenses.

Which of the Following Statements Related to the Multiple-Step Income