Question

Which of the following profit amounts usually will be listed in both the single step and the multiple step formats of the income statement?

1) Gross profit
2) Operating profit
3) Net profit
4) All of the above

Answer 1

Net profit is the profit amount usually listed in both the single step and multiple step formats of the income statement, as it represents the final profit after all expenses.

Step-by-step explanation:

The profit amount that is usually listed in both the single step and multiple step formats of the income statement is Net profit. Here's why:

• Gross profit is typically not listed on a single-step income statement because this format does not separate operating revenue and expenses from non-operating ones.
• Operating profit is usually only listed on a multiple-step income statement, where operating and non-operating activities are separated.
• Net profit, which is the profit after all expenses including taxes and interest have been deducted, is listed on both income statement formats as it represents the final amount of profit earned by the business.

Therefore, among the given options, the correct answer is 3) Net profit.