Asked by Megan McDermott on May 22, 2024
Verified
In a multiple-step income statement income from operations excludes other revenues and gains and other expenses and losses.
Multiple-Step Income Statement
A multiple-step income statement is a more detailed financial statement that separates operating revenues and expenses from non-operating ones, providing insights into the different aspects of a company's performance.
Income From Operations
Also known as operating income, it reflects the revenue from a company's principal business activities minus its direct operating expenses (excluding non-operating income and expenses).
Other Revenues and Gains
Income from activities not related to a company's primary business operations.
- Identify the differences in income statement structures and the organization of revenue and expenses.
Verified Answer
PM
Priya MedurMay 26, 2024
Final Answer :
True
Explanation :
Income from operations is the result after subtracting only the operating expenses from the total revenues, and it does not include other revenues and gains or other expenses and losses.
Learning Objectives
- Identify the differences in income statement structures and the organization of revenue and expenses.