A Primary Advantage of the Multiple-Step Format of the Income

question 130

Multiple Choice

A primary advantage of the multiple-step format of the income statement over the single-step format is that the multiple-step format:

• A) classifies expenses by function.
• B) results in a higher amount of net income.
• C) separately lists income tax expense.
• D) lists revenues and expenses in order of their dollar amount.

---

Definitions:

Thematic Apperception Tests

A projective psychological test used to reveal a person’s social drives or needs by their interpretation of a series of pictures of emotionally ambiguous situations.

Ego Resiliency

In Jack Block’s personality theory, the ability to vary one’s level of ego control in order to respond appropriately to opportunities and situational circumstances.

Psychological Adjustment

The process of achieving a healthy, balanced state of psychological well-being through adapting to new conditions or the environment.

Self-monitoring

The tendency of individuals to observe and regulate how they are perceived by others, adjusting their behavior accordingly.