Question
Which of the following is shown on a multiminusstep income statement but not on a singleminusstep income statement?
Question content area bottom
Part 1
A.
cost of goods sold
B.
net sales revenue
C.
gross profit
D.
net income
Question content area bottom
Part 1
A.
cost of goods sold
B.
net sales revenue
C.
gross profit
D.
net income
Answers
GPT-4o mini
The correct answer is **C. gross profit**.
A multi-step income statement provides a detailed breakdown of revenue and expenses, including calculation of gross profit (net sales revenue minus cost of goods sold). In contrast, a single-step income statement presents total revenues and total expenses in one step, without separating the components, and therefore does not specifically show gross profit.
A multi-step income statement provides a detailed breakdown of revenue and expenses, including calculation of gross profit (net sales revenue minus cost of goods sold). In contrast, a single-step income statement presents total revenues and total expenses in one step, without separating the components, and therefore does not specifically show gross profit.