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:

Analyzer

A person or tool that examines and evaluates something carefully to understand its components or structure.

Sensor

A device that detects or measures physical properties and records, indicates, or otherwise responds to it.

Left-Brain Dominant

Describes individuals who tend to be more analytical, logical, and detail-oriented, often excelling in tasks involving language and mathematics.

Logical

Pertaining to or characterized by clear, sound reasoning.