Which of the Following Is an Advantage of the Single-Step

question 134

Multiple Choice

Which of the following is an advantage of the single-step income statement over the multiple-step income statement?

• A) It reports gross profit for the year.
• B) Expenses are classified by function.
• C) It matches costs and expenses with related revenues.
• D) It does not imply that one type of revenue or expense has priority over another.

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Definitions:

Dummy Variables

Variables created to represent categorical data with two or more categories by assigning binary values (0 or 1), allowing them to be used in regression models.

Qualitative Variables

Variables that express qualitative attributes, and are usually described by non-numeric categories or groups.

Regression Model

A statistical approach for estimating the relationships among variables, often used for prediction and forecasting.

Dummy Variables

Variables created to assign numerical values to categorical data, often used in regression analysis to include qualitative factors as independent variables.