Which of the Following Is Not a Drawback of the Single-Step

question 4

Multiple Choice

Which of the following is not a drawback of the single-step income statement?

• A) It does not separate operating and non-operating items.
• B) It combines revenues and gains without classification.
• C) It does not classify expenses by function.
• D) It misstates net income due to oversimplification.

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Definitions:

Equilibrium Price

The equilibrium price in the market where the supply of goods matches the demand for goods.

Equilibrium Quantity

The quantity of goods or services supplied is exactly equal to the quantity demanded at the market price.

French Fries

A popular fast food made by cutting potatoes into strips and deep-frying them until they are crispy.

Hamburger Ingredients

The various components required to make a hamburger, such as ground meat, lettuce, tomato, buns, and condiments.