The Simple Multiplier May Be Calculated As

question 131

Multiple Choice

The simple multiplier may be calculated as:

• A)1/(MPS + MPC).
• B)1/(1 - MPC).
• C)MPC/MPS.
• D)1 - MPC = MPS.

---

Definitions:

Multiple-Step

The multiple-step income statement is a detailed financial report that separates operating revenue and expenses from non-operating ones to highlight core business activities.

Single-Step

A method of preparing the income statement where all revenues are summarized together and all expenses are summarized together, with a single step to determine net income.

Income Statement

A financial report that shows the company's revenues, expenses, and profits over a specific period of time.

Sales Revenues

The total income a business receives from selling goods or services before any expenses are deducted.