Select your language

Suggested languages for you:
Log In Start studying!
Answers without the blur. Just sign up for free and you're in → Illustration

Q5-21RQ

Expert-verified
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.

See the step by step solution

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.

Most popular questions for Business-studies Textbooks

Icon

Want to see more solutions like these?

Sign up for free to discover our expert answers
Get Started - It’s free

Recommended explanations on Business-studies Textbooks

94% of StudySmarter users get better grades.

Sign up for free
94% of StudySmarter users get better grades.