Question

Gross profit does not appear to be:

A. on either a multiple-step or single-step income statement.
B. on a multiple-step income statement.
C. on a single-step income statement.
D. relevant in analyzing the operation of a merchandising company.

Answer 1

Answer:C. on a single-step income statement.

Explanation:A single-step income statement is a type of statement that lists all expenses in a single column,there is no separate column for the different types of costs. All the costs such as such as Operating and non-operating costs and cost of goods sold are all reported in a single column.

THIS TYPE OF INCOME STATEMENT IS USUALLY UTILIZED BY SMALL SCALE BUSINESS ORGANISATIONS SUCH AS SOLE PROPRIETOR AND PARTNERSHIP.