Multi Step Income Statement: A multiple step income statement refers to the income statement that shows the operating and non-operating activities of the business under separate head. In different steps of the multi-step income statement, principal operating activities are reported that starts from the record of sales revenue with all contra sales revenue account like sales returns, allowances and sales discounts. Single Step Income Statement: A single step income statement refers to the income statement that does not show the detailed information about the revenue and expenses heads. It uses just one subtraction. To Identify: Whether the given statement is single step and multi step income statements.

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Chapter 4, Problem 11QS

To determine

Multi Step Income Statement:

A multiple step income statement refers to the income statement that shows the operating and non-operating activities of the business under separate head. In different steps of the multi-step income statement, principal operating activities are reported that starts from the record of sales revenue with all contra sales revenue account like sales returns, allowances and sales discounts.

Single Step Income Statement: A single step income statement refers to the income statement that does not show the detailed information about the revenue and expenses heads. It uses just one subtraction.

To Identify: Whether the given statement is single step and multi step income statements.

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