Question

The type of income statement that reports a series of subtotals such as gross profit, operating income, and income before taxes is a ______ income statement.

A. multiple-step
B. classified
C. single-step
D. current

Answer 1

A. multiple-step

Step-by-step explanation:

The Multiple-Step Income statement is used to reports a series of subtotals such as gross profit, operating income, and income before taxes. This allows the users to identify income generated form Primary and Secondary Activity of the Business.