Which of the Following Statements Is True Regarding the Multiple-Step

question 90

Multiple Choice

Which of the following statements is true regarding the multiple-step income statement?

• A)The multiple-step income statement is used only by companies that sell products,not those that provide services.
• B)The multiple-step income statement is helpful in determining a company's working capital.
• C)The multiple-step income statement reports the same net income as the single-step income statement.
• D)The multiple-step income statement is required under generally accepted accounting principles.

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Definitions:

Optimum

The most favorable condition or level for growth, reproduction, or success.

Socially Optimal

The point at which the benefits to society of an action, policy, or project, are maximized, taking into account all costs and benefits.

MSB and MSC

Marginal Social Benefit (MSB) and Marginal Social Cost (MSC) refer to the additional benefit or cost to society of producing one more unit of a good or service.

Pollution

The introduction of contaminants into the natural environment, causing adverse changes and harm to ecosystems and human health.