LO1 A multiple-step form of income statement calculates gross profit, before subtracting operating expenses.

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 15, Problem 1TF

LO1 A multiple-step form of income statement calculates gross profit, before subtracting operating expenses.

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

The given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

Explanation of Solution

Multi-step income statement:

Multi-step income statement provides step-by-step computation of net sales, cost of goods sold, operating expenses, gross profit, other revenues and expenses, income from operations and net income.

In a multi-step income statement, Initially Gross sales are computed (less sales returns and allowances and sales discounts) and this difference is known as net sales.
Cost of goods sold is subtracted from net sales to get gross profit or gross margin. Then, operating expenses are subtracted from the gross profit to calculate income from operations.

Therefore, from the above explanation, the given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

In a multiple-step income statement, operating expenses are subtracted from gross profit to compute a.other income. b.income from operations. c.net loss. d.net income.

1

The income statement line gross profit will appear on which income statement format? Select one: a. Receipt and payment account b. Multiple step income statement c. Single step income statement d. Income and expenditure account

Answer 2

Textbook Question

Chapter 15, Problem 1TF

LO1 A multiple-step form of income statement calculates gross profit, before subtracting operating expenses.

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

The given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

Explanation of Solution

Multi-step income statement:

Multi-step income statement provides step-by-step computation of net sales, cost of goods sold, operating expenses, gross profit, other revenues and expenses, income from operations and net income.

In a multi-step income statement, Initially Gross sales are computed (less sales returns and allowances and sales discounts) and this difference is known as net sales.
Cost of goods sold is subtracted from net sales to get gross profit or gross margin. Then, operating expenses are subtracted from the gross profit to calculate income from operations.

Therefore, from the above explanation, the given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 15, Problem 1TF

LO1 A multiple-step form of income statement calculates gross profit, before subtracting operating expenses.

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

The given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

Explanation of Solution

Multi-step income statement:

Multi-step income statement provides step-by-step computation of net sales, cost of goods sold, operating expenses, gross profit, other revenues and expenses, income from operations and net income.

In a multi-step income statement, Initially Gross sales are computed (less sales returns and allowances and sales discounts) and this difference is known as net sales.
Cost of goods sold is subtracted from net sales to get gross profit or gross margin. Then, operating expenses are subtracted from the gross profit to calculate income from operations.

Therefore, from the above explanation, the given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 15, Problem 1TF

LO1 A multiple-step form of income statement calculates gross profit, before subtracting operating expenses.

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

The given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

Explanation of Solution

Multi-step income statement:

Multi-step income statement provides step-by-step computation of net sales, cost of goods sold, operating expenses, gross profit, other revenues and expenses, income from operations and net income.

In a multi-step income statement, Initially Gross sales are computed (less sales returns and allowances and sales discounts) and this difference is known as net sales.
Cost of goods sold is subtracted from net sales to get gross profit or gross margin. Then, operating expenses are subtracted from the gross profit to calculate income from operations.

Therefore, from the above explanation, the given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

The given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

Explanation of Solution

Multi-step income statement:

Multi-step income statement provides step-by-step computation of net sales, cost of goods sold, operating expenses, gross profit, other revenues and expenses, income from operations and net income.

In a multi-step income statement, Initially Gross sales are computed (less sales returns and allowances and sales discounts) and this difference is known as net sales.
Cost of goods sold is subtracted from net sales to get gross profit or gross margin. Then, operating expenses are subtracted from the gross profit to calculate income from operations.

Therefore, from the above explanation, the given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

Answer 8

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

The given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

Explanation of Solution

Multi-step income statement:

Multi-step income statement provides step-by-step computation of net sales, cost of goods sold, operating expenses, gross profit, other revenues and expenses, income from operations and net income.

In a multi-step income statement, Initially Gross sales are computed (less sales returns and allowances and sales discounts) and this difference is known as net sales.
Cost of goods sold is subtracted from net sales to get gross profit or gross margin. Then, operating expenses are subtracted from the gross profit to calculate income from operations.

Therefore, from the above explanation, the given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Identify whether the given statement is true or false.

Answer 12

Answer to Problem 1TF

The given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

Answer 13

Explanation of Solution

Multi-step income statement:

Multi-step income statement provides step-by-step computation of net sales, cost of goods sold, operating expenses, gross profit, other revenues and expenses, income from operations and net income.

In a multi-step income statement, Initially Gross sales are computed (less sales returns and allowances and sales discounts) and this difference is known as net sales.
Cost of goods sold is subtracted from net sales to get gross profit or gross margin. Then, operating expenses are subtracted from the gross profit to calculate income from operations.

Therefore, from the above explanation, the given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

Answer 14

Ch. 15 - LO1 A multiple-step form of income statement...Ch. 15 - Prob. 2TF Ch. 15 - Prob. 3TF Ch. 15 - Prob. 4TF Ch. 15 - LO4 Accounts receivable turnover is the number of...Ch. 15 - Prob. 1MC Ch. 15 - Prob. 2MC Ch. 15 - Prob. 3MC Ch. 15 - Prob. 4MC Ch. 15 - Prob. 5MC

LO1 A multiple-step form of income statement calculates gross profit, before subtracting operating expenses.

Concept explainers

Videos

Answer to Problem 1TF

Explanation of Solution

Want to see more full solutions like this?

Chapter 15 Solutions