Which of the Following Is Not True About a Multiple-Step

question 60

Multiple Choice

Which of the following is not true about a multiple-step income statement?

• A)There is a section for operating expenses.
• B)There may be a section for non-operating activities.
• C)There may be a section for operating assets.
• D)There is a section for cost of goods sold.

---

Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Sum-Of-The-Years'-Digits Method

A depreciation method that accelerates the expense recognition, basing the depreciation for each year on a decreasing fraction of the depreciable amount.

Benefits Decline

A situation where the advantages or value derived from an asset or service decrease over time.

Depreciable Base

The cost of an asset less its salvage value, representing the total amount that can be depreciated over its useful life.