Question

A multiple-step income statement:________a) highlights certain intermediate components of income that analysts use to compute ratios for assessing the performance of the company.b) separates operating transactions from nonoperating transactions.c) matches costs and expenses with related revenues.d) all of these answer choices are correct.

Answer 1

Answer:

D. all of these answer choices are correct

Explanation:

A multi-step income statement involves having multiple subtotal and categories within the income statement to provide to readers more clarity and details. It separates operating costs and revenues from non operating cost and revenues. It highlights certain intermediate components of income that analysts use to compute ratios for assessing the performance of the company. Also, multiple step income statement matches costs and expenses with related revenues. It is one of the most commonly used type of income statement.