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The amount of net income shown on a multi-step income statement will differ from the amount of net income shown on a single-step income statement. (A) True(B) False

User Ericponto
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Answer:

(B) False

Step-by-step explanation:

As we know that

Net income = Total revenues - total expenses

The main difference between the single - step income statement and the multi-step income statement due to classifications

In the single - step income statement, we normally

Revenues

Total revenues (A)

Expenses

Total expenses (B)

Net income (A-B)

while in multi-step income statement,

Sales revenue

Less: Cost of goods sold

Gross profit

Less: Operating expenses

General and administrative expenses

Depreciation expense -

Profit before tax

Less: income tax

Net income

So in both the cases, the amount of the net income is equal.

User JosepB
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