Question

Which of the following is NOT true? A. The financial statement which reports information helpful in calculating the current ratio would be the balance sheet. B. A gain on the sale of land is included in net income from operations in a multi-step income statement. C. The governmental agency that has broad powers to prescribe accounting practices to public companies that trade on the major stock exchanges is the Securities Exchange Commission. D. Current assets will be typically be converted to cash or sold/consumed in one year or less. E. All of the above are true.

Answer 1

Answer:

B. A gain on the sale of land is included in net income from operations in a multi-step income statement.

Explanation:

A multi step income statement is a detailed for of an income statement that shows the revenues, expenses, and overall position of a business. Wether it is a profit or loss.

Operational revenues and expenses are shown separately from non operational expense.

The main aim of multi step income statement bus to calculate net income.

In this scenario gain on the sale of land is supposed to be included in non operational revenue. It is not an activity that generates income from everyday operations of the business.