The following list contains several items that appear on an income statement.$\begin{array} { l l l l }
\hline \text { 1. } & \text { Other revenue and expenses } & 5 . & \text { Net income } \
\text { 2. } & \text { Income before taxes } & 6 . & \text { Operating revenues } \
\text { 3. } & \text { Income taxes } & 7 . & \text { Income from operations } \
\text { 4. } & \text { Operating expenses } & & \
\hline
\end{array}$ Select the choice that lists the items in the order they would appear on a multiple-step income statement.
A)6,1,7,4,2,3,5
B)7,6,1,4,2,3,5
C)6,4,7,1,2,3,5
D)6,7,4,1,2,3,5

Question

The following list contains several items that appear on an income statement.$\begin{array} { l l l l } 
\hline \text { 1. } & \text { Other revenue and expenses } & 5 . & \text { Net income } \
\text { 2. } & \text { Income before taxes } & 6 . & \text { Operating revenues } \
\text { 3. } & \text { Income taxes } & 7 . & \text { Income from operations } \
\text { 4. } & \text { Operating expenses } & & \
\hline
\end{array}$ Select the choice that lists the items in the order they would appear on a multiple-step income statement.
A)6,1,7,4,2,3,5
B)7,6,1,4,2,3,5
C)6,4,7,1,2,3,5
D)6,7,4,1,2,3,5

Quizplus · Accepted Answer

In a multiple-step income statement, the order typically starts with operating revenues (6), followed by operating expenses (4) to calculate income from operations (7). Then, other revenues and expenses (1) are considered to arrive at income before taxes (2). Income taxes (3) are then deducted to report net income (5).

The Following List Contains Several Items That Appear on an Income