Question

Most real-world income statements are presented using which format? a. Multiple-step. b. Single-step. c. Magnitude-step. d. Income-step.

Answer 1

Answer:

a. Multiple-step.

Explanation:

Most real-world income statements are presented using multiple-step format, in multiple-step format, the operating expenses and operating revenues are separated from the non-operating expenses and non operating revenues respectively and from the gains and losses. Contrary to the single-step approach which only gives a simple accounting of a businesses net income without segregating the operating expenses and operating revenue.