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. To Identify: Sections of the multiple-step income statement that related to operating activities.

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Chapter 5, Problem 18Q

(a)

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.

To Identify: Sections of the multiple-step income statement that related to operating activities.

(b)

To determine

To Identify: Sections of the multiple-step income statement that related to non-operating activities.

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