Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 83

Income statement format and EPS disclosures Refer to the consolidated statements of income on page 687 of the Intel Corporation annual report in the appendix.

Required:

a. Does Intel use the single-step format or the multiple-step format? Which format do you prefer? Explain your answer.

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b. Refer to the basic and diluted earnings per share data on page 687 and the related note disclosures on page 731. Explain why this disclosure is appropriate.

Step 1 of 2

Income statement format & EPS disclosures

Note: Data are extracted from pages 687 and 731 of the textbook as referred to the annual report of Intel Corporation.

a) Intel Corporation uses a multiple-step format for the presentation of its income statement. The multiple-step format looks easier to read and understand because it presents intermediate captions and subtotals that are very helpful to investors.