Final answer:
The statement is false as both multiple-step and single-step income statements are useful for analysis purposes depending on the desired detail in financial reporting.
Step-by-step explanation:
The statement 'The income statement comes in two basic formats, the multiple-step and the single-step versions; however, for analysis purposes the single-step version should be used' is false. Both multiple-step and single-step income statements have their own places in financial analysis. The multiple-step income statement provides a more detailed view by segregating operating revenues and expenses from non-operating revenues, expenses, gains, and losses. The single-step statement, on the other hand, simplifies the presentation by summarizing all revenues and expenses in one step without providing subtotals. Which format to use for analysis depends on the level of detail the analyst requires.
The correct statement could be: 'The income statement comes in two basic formats, the multiple-step and the single-step versions; both can be used for analysis purposes depending on the level of detail required.'