Asked by Carrisa Green on May 10, 2024
Verified
A multi-step income statement:
A) shows debits.
B) shows credits.
C) shows debt owed.
D) shows subtotal amounts.
Multi-Step Income Statement
An income statement that separates operating activities from non-operating ones, showing multiple levels of income or profit.
Subtotal Amounts
Intermediate sums calculated by adding together certain items, typically within a larger calculation or accounting process.
- Comprehend the sequence and preparation of financial statements.
Verified Answer
KA
Katie AndersonMay 14, 2024
Final Answer :
D
Explanation :
A multi-step income statement separates operating revenues and operating expenses from non-operating revenues, non-operating expenses, gains, and losses, providing subtotals such as gross profit and operating income, which offer insights into different aspects of a company's financial performance.
Learning Objectives
- Comprehend the sequence and preparation of financial statements.