Regarding Income Statement Formats, Which of the Following Statements Is

question 44

Multiple Choice

Regarding income statement formats, which of the following statements is INCORRECT?

• A)A single-step income statement lists all the revenues together under a heading such as Revenues and Gains.
• B)A single-step income statement lists income tax expense separate of all other expenses.
• C)A multistep income statement reports a number of subtotals to highlight important relationships between revenues and expenses.
• D)A multistep income statement is the only format that allows users to evaluate the profitability of the business.

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Definitions:

Particular Frame

A specific perspective or point of view adopted in evaluating or analyzing a situation, which can influence perceptions and outcomes.

Secondary Concerns

Issues or considerations that are not of primary importance but may still influence outcomes or decisions.

Primary Issues

The main or most important topics or problems to be discussed or dealt with in a negotiation or discussion.

Cognitive Bias

A systematic error in thinking that affects decisions and judgments, resulting from one's own personal experiences, beliefs, or preferences.