Question

A multiple-step income statement is thought to be more beneficial to financial users because of the revelation of important relationships. Which of the following is not separately identified on a multiple-step income statement?

A. Gross profit
B. Net income
C. Income taxes
D. Total costs and expenses

Answer 1

D. Total costs and expenses

Step-by-step explanation:

As we know that

The income statement reports the total revenues earned and the total expenses incurred for a particular period.

In the case of the multi-step income statement, the gross profit, net income, income tax expense has a separately identified rather show it as total cost and expenses. It shows the various expenses like - selling and administrative expenses, cost of goods sold, etc