Which of the following is not a true statement about a multiple-step income statement?

A) Operating expenses are similar for merchandising and service enterprises.
B) There may be a section for nonoperating activities.
C) There may be a section for operating assets.
D) There is a section for cost of goods sold.

Multiple-Step

An income statement format that separates operating revenues and expenses from non-operating ones to calculate net income.

Operating Expenses

Costs associated with the daily operations of a business, excluding cost of goods sold, directly related to generating revenue.

Nonoperating Activities

Nonoperating activities involve the revenues and expenses that are not related to the core operations of a business.