Regarding Income Statement Formats,which of the Following Statements Is INCORRECT

question 143

Multiple Choice

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

• A)A single-step income statement lists all the revenues and gains together under a heading such as Revenues and Gains.
• B)A single-step income statement lists income tax expense separately from 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:

Subjective Impossibility

A situation in which it is impossible for an individual to perform a contractual duty due to personal inability or circumstances, despite the task being objectively possible.

Frustration Of Purpose

A defense in contract law that may excuse parties from their obligations if an unforeseen event undermines the contract's original purpose.

Condition Precedent

A condition or event that must occur before a contract or a specific provision within a contract becomes effective or enforceable.

Illusory Promise

A statement or promise that is misleading or lacks the necessary intent to be legally enforceable.