Using the Multiple-step Income Statement, match each definition with the section of the Multiple-step Income Statement:Income from a company's principal operating[ Choose ]activity; determined by subtracting cost ofgoods sold and operating expenses from net [Choose]sales.The excess of net sales over the cost of goods sold.Multiple-step income statementOther expenses and lossesVarious revenues, expenses, gains, and losses Other revenues and gainsthat are unrelated to a company's main lineIncome from operationsOperating expensesNonoperating activitiesof operations.Expenses incurred in the process of earning[ Choose ]sales revenue.A nonoperating-activities section of the[ Choose ]income statement that shows expenses andlosses unrelated to the company's main lineof operationsA nonoperating-activities section of the[ Choose ]income statement that shows revenues andgains unrelated to the company's main line ofoperations.An income statement that shows several[ Choose ]steps in determining net income.>>>

Multiple-step income statement is a format of income statement in which items of revenues and…

Answered: Multiple-step Income Statement.

Business

Accounting

Multiple-step Income Statement.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter2: Financial Statements And The Annual Report

Section: Chapter Questions

Problem 2.6E: Selling Expenses and General and Administrative Expenses Operating expenses are subdivided between...

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A multi-step income statement ________. A. separates cost of goods sold from operating expenses B. considers interest revenue an operating activity C. is another name for a simple income statement D. combines cost of goods sold and operating expenses
Identify each of the following items relating to sections of an income statement as Revenue from Sales (S), Cost of Goods Sold (CGS), Selling Expenses (SE), General Expenses (GE), Other Income (OI), or Other Expenses (OE). a. Utilities Expense b. Advertising Expense c. Purchases Discounts d. Sales Returns and Allowances e. Interest Income f. Freight In g. Depreciation Expense, Equipment h. Interest Expense i. Rent Expense j. Sales
A simple income statement ________. A. combines all revenues into one category B. does not combine all expenses into one category C. separates cost of goods sold from operating expenses D. separates revenues into several categories
Selling Expenses and General and Administrative Expenses Operating expenses are subdivided between selling expenses and general and administrative expenses when a multiple-step income statement is prepared. Identify each of the following items as a selling expense (S) or general and administrative expense (G$A). ______ 1. Advertising expense ______ 2. Depreciation expenseâ€”store furniture and fixtures ______ 3. Office rent expense ______ 4. Office salaries expense ______ 5. Store rent expense ______ 6. Store salaries expense ______ 7. Insurance expense ______ 8. Supplies expense ______ 9. Utilities expense
What is the term used for the profit on a sale before any operating expenses have been deducted? a. Net Income b. Net Profit c. Gross Profit d. Gain on Sale e. All of the above
Which of the following accounts would be reported under operating expenses on a multi-step income statement? A. sales B. advertising expense C. sales returns and allowances D. interest expense
Multiple-Step Income Statement and Profit Margin Refer to the list of income statement items in Problem 2-6. Assume that Shaw Corporation classifies all operating expenses into two categories: (1) selling and (2) general and administrative. Required Prepare a multiple-step income statement for the current year. What advantages do you see in this form for the income statement? Compute Shaws profit margin. Comment on Shaws profitability. What other factors need to be taken into account to assess Shaws profitability?
If a company capitalizes costs that should be expensed, how is its income statement for the current period impacted? A. Assets understated B. Net Income understated C. Expenses understated D. Revenues understated
What items are included in a companys income from continuing operations? How are these categorized if the company uses (a) a single-step format or (b) a multiple-step format?
The measurement of earnings concept that consists of a companys profit from operations after taxed are subtracted is ________. A. ROI B. EPS C. EBITDA D. NOPAT
Use the weighted-average (AVG) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for B75 Company, considering the following transactions.