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What are the two subtotals that distinguish the multi-step income statement from the single-step income statement?

a. Income before taxes and income taxes
b. Total revenues and total expenses
c. Total operating revenues and total operating expenses
d. Income from operations and income before taxes

User Lavinia
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Final answer:

A multi-step income statement features the subtotals for income from operations and income before taxes, thus providing a detailed view of a company's financial activities.

Step-by-step explanation:

The two subtotals that distinguish the multi-step income statement from the single-step income statement are income from operations and income before taxes. The multi-step income statement is a more detailed financial statement which separates operating revenues and expenses from non-operating revenues, expenses, gains, and losses. The subtotals provided allow readers to see the results of core business operations separate from other financial activities.The two subtotals that distinguish the multi-step income statement from the single-step income statement are Total operating revenues and total operating expenses.

In the multi-step income statement, these subtotals help to provide more detailed information on the different sources of revenue and types of expenses. Total operating revenues refer to all the revenues generated from the core operating activities of the business, while total operating expenses include all the expenses incurred in order to generate those revenues.

User BunjiquoBianco
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