Asked by Christopher Severson on Jun 07, 2024
Verified
Which of the following statements related to the multiple-step income statement is not true?
A) Subtotals for total selling expenses and general and administrative expenses are reported.
B) Interest revenue is included with other revenue and gains.
C) The first section of the statement reports gross profit.
D) Shows only one total for expenses.
E) Nonoperating items are reported separately from operations.
Multiple-Step Income Statement
An income statement that shows multiple steps in determining net income, including gross profit, operating income, and other incomes and expenses.
Selling Expenses
Costs associated with the selling of a company's goods or services, not including the cost of producing the goods.
Nonoperating Items
Revenue and expenses arising from activities outside of a company's normal business operations, such as investing or financing activities.
- Gain insight into the layout and parts of a multiple-phase income statement.
Verified Answer
YL
Youseline LouisJun 09, 2024
Final Answer :
D
Explanation :
This statement is not true because the multiple-step income statement reports subtotals for various categories of expenses, such as selling expenses and general and administrative expenses, before reporting a total for expenses.
Learning Objectives
- Gain insight into the layout and parts of a multiple-phase income statement.