Question

Which of the following captions would more likely be found in a multiple-step income statement?

1) Net Income
2) Cost of Goods Sold
3) Operating Expenses
4) Gross Profit

Answer 1

Gross Profit is more likely to be found in a multiple-step income statement.

Step-by-step explanation:

The correct answer would be Gross Profit.

A multiple-step income statement is a financial statement that separates certain business activities into categories, such as operating revenue, operating expenses, and non-operating activities.

The captions you listed are all important components of an income statement, but Gross Profit specifically refers to the amount left over after deducting the cost of goods sold (COGS) from the total revenue. It helps measure the profitability of a company's core operations.