Question

Which of the following is an income statement that contains subtotals to highlight significant relationships? In addition to net income, it reports gross profit and operating income.
a) subtotal income statement
b) trial income statement
c) single-step income statement
d) multi-step income statement

Answer 1

Answer:

d) multi-step income statement

Explanation:

The multi-step first determinated de gross profit then, it proceeds to subtract the operating expenses like wages, rent, depreication and other to arrive to operating income.

Afterwhich, it subtract interest and other non-operating result like gain on disposal to get net income.