Final answer:
The separation of operating and non-operating activities is featured in a multiple-step income statement but not in a single-step income statement. The multiple-step format distinguishes between the two, while the single-step groups all revenues and expenses together.
Step-by-step explanation:
The question concerns the distinction between operating and non-operating activities within financial statements. In financial reporting, operating activities pertain to the core business operations of a company, such as sales and the costs of goods sold, while non-operating activities include items such as investment income or expenses that are not directly tied to the primary business activities.
The separation of operating and non-operating activities occurs in a multiple-step income statement but not in a single-step income statement. The multiple-step income statement provides a detailed breakdown of revenues and expenses, separated into operating and non-operating sections. Conversely, a single-step income statement combines all revenues and expenses into a single category, without separating operating from non-operating activities.
Therefore, the correct answer is:
2) a multiple-step but not a single-step income statement