Question

prepare a multiple-step income statement for the year ended december 31​

Answer 1

Answer:

Single-Step Income Statement

• Total revenue – total expenses = Net Income

Multi-Step Income Statement

• Separates revenues into operating and non-operating

• Separates expenses into cost of goods sold, operating and non-operating

• May further divides Operating Expenses into Selling Expenses and Administrative

Expenses

• Adds subtotals to increase usefulness of income statement

Comprehensive Income Statement

• Certain other gains or losses are not included in net income but are included in

the more inclusive income measure, Comprehensive Income

• Gains or losses result from adjustments such as marking certain assets to their fair

values

Cost of Goods Sold:

• Inventory that has been sold becomes an expense, Cost of Goods Sold, in the

period of sale.

Gross Profit:

• Gross Margin = Gross Profit = Net Sales – Cost of Goods Sold

• Gross Margin ratio = Gross Margin / Net Sales

• First key indicator of profitability

if it helpful plz mark me as brainliest