Question

On a multistep income statement, income from continuing operations __________.

Answer 1

On a multistep income statement, income from continuing operations represents the profit generated from the core activities of a business, excluding any income or losses from discontinued operations and extraordinary items. This measure focuses solely on ongoing operations and is typically calculated after deducting cost of goods sold (COGS) from sales revenue, followed by operating expenses, interest expenses, and taxes. It provides a clearer picture of a company's profitability from its primary business activities.