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Which of the following would not appear on a multiple-step budgeted income statement?

A) gross profit
B) income tax expense
C) operating income
D) salaries payable

1 Answer

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Final answer:

Salaries payable would not appear on a multiple-step budgeted income statement, as it is a liability that is recorded on the balance sheet, not the income statement.

Step-by-step explanation:

The item that would not appear on a multiple-step budgeted income statement is D) salaries payable. A multiple-step income statement is a detailed financial report that separates operating revenues and operating expenses from non-operating revenues, non-operating expenses, gains, and losses, ultimately providing a clear view of a company's operating and non-operating performance.

While gross profit, income tax expense, and operating income are standard components that reflect income and expenses directly tied to the primary operations and tax obligations of a business, salaries payable is a liability and would appear on the balance sheet, not the income statement. Salaries payable refer to the owed but not yet paid salaries, indicating the amount of money a company owes to its employees for services performed and is a measure of short-term obligation rather than an income statement figure.

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