Question

Multiple-step income statements:

A. cost of goods sold as an operating expense.
B. Contain more detail than a simple listing of revenues and expenses.
C. Are required by the FASB and IASB.
D. Are required for the periodic inventory system.
E. Are only used in perpetual inventory systems.

Answer 1

B) Contains more detail than a simple listing of revenue and expenses

Step-by-step explanation:

Multiple-step income statements are also known as multiple-step profit or loss statements. These financial statements are used for separating operating revenues as well as well as the operating expenses from the nonoperating revenues and expenses. The Multiple-step income statements displays the gross profit of a firm or business. That means, this multiple-step income statement reveals a more detailed report of the revenues and expenses the business has.