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Horngren'S Financial And Managerial Accounting
Found in: Page 294

Short Answer

Describe the multi-step income statement.

A multi-step income statement presents the operating and non-operating revenues and expenses separately to reflect the net income of a business.

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Step by Step Solution

Meaning of Financial Statements

Financial statements are the performance reports of a business concern that present annual financial transactions in a summarized manner. It includes the income statement, balance sheet, cash flow statement, and statement of retained earnings.

Description of the multi-step income statement  

In a multi-step income statement, revenues and expenses associated with core operations and secondary events are presented separately.

A multi-step income statement reflects the income from operations and other income separately. It enables the users of financial information to draw effective financial decisions from the segregated data.

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