Final answer:
Income from operations appears on a multiple step income statement, where it distinctly reports the company's profitability from core business activities, separating operating revenues and expenses from non-operating ones.
Step-by-step explanation:
The question regarding where income from operations appears is specific to financial reporting and accounting practices. Income from operations refers to the profitability of a company's core business activities. It is calculated after deducting operating expenses, such as the cost of goods sold, salaries, and rent, from the company's gross revenue. Income from operations appears on a multiple step income statement. This type of income statement separates operating revenues and operating expenses from non-operating revenues, non-operating expenses, gains, and losses, providing a clear picture of a company's operating performance. On the other hand, a single step income statement aggregates all revenues and expenses, without separating them into operating and non-operating categories. As a result, it does not distinctly report income from operations. Therefore, the correct answer to the student's question is: D. multiple step income statement