Answer (A) is correct . Within the income from continuing operations classification, the single-step income statement provides one grouping for revenue items and one for expense items. The single-step is the one subtraction necessary to arrive at income from continuing operations prior to the effect of income taxes. In contrast, the multiple-step income statement matches operating revenues and expenses separately from nonoperating items. This format emphasizes subtotals such as gross margin, operating income, and nonoperating income within presentation of income from continuing operations.
Answer (B) is incorrect because The major distinction is the separation of operating and nonoperating data.
Answer (C) is incorrect because The major distinction is the separation of operating and nonoperating data.
Answer (D) is incorrect because The major distinction is the separation of operating and nonoperating data.
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