Chapter 5, Problem 11QS

Multiple-step income statement
P4
For each item below, indicate whether the statement describes a multiple-step income statement or a single-step income statement.
a. Multiple-step income statement
b. Single-step income statement
_______1. Commonly reports detailed computations of net sales and other costs and
expenses.
_______2. Statement limited to two main categories (revenues and expenses).
_______3. Reports gross profit as a separate line item.
_______4. Reports net income equal to income from operations adjusted for any non
operating items.