Answer (B) is correct . A single-step income statement combines all revenues and gains, combines all expenses and losses, and subtracts the latter from the former in a “single step” to arrive at net income. Gross profit, being the difference between sales revenue and cost of goods sold, does not appear on a single-step income statement.
Answer (A) is incorrect because Loss from discontinued operations is shown on both a multiple-step and a single-step income statement.
Answer (C) is incorrect because Extraordinary gain is shown on both a multiple-step and a single-step income statement.
Answer (D) is incorrect because Net income from continuing operations is shown on both a multiple-step and a single-step income statement.
|
