Which of the following statements related to the multiple-step income statement is false? Subtotals for total selling expenses and general and administrative expenses are reported. Interest revenue is included with other revenue and gains. The first section of the statement reports gross profit. Only one total for all expenses is shown. Non-operating items are reported separately from operations.

Which of the following statements related to the multiple-step income statement is false? Subtotals for total selling expenses and general and administrative expenses are reported. Interest revenue is included with other revenue and gains. The first section of the statement reports gross profit. Only one total for all expenses is shown. Non-operating items are reported separately from operations.

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter12: Financial Statements, Closing Entries, And Reversing Entries

Section: Chapter Questions

Problem 3E

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Gross profit and income from operations are reported on a multiple-step but not a single-step income statement. * True False
Which of the following statements related to multiple-step Statement of Profit or Loss is not true? O The first section of the statement reports gross profit. O Subtotals for total selling expenses and general and administrative expenses are reported. O Non-operating items are reported separately from operations. O Shows only one total for expenses.
Gross profit and income from operations are reported on a multiple- step but not a single-step income statement. * True False
Which of the following best describes a single-step income statement? a.Operating expenses are divided into the subcategories of selling expenses and general expenses. b.Gross sales is shown first, less sales returns and allowances and sales discounts. c.Operating expenses are listed and subtracted from the gross profit to compute income from operations. d.All revenue items and their total are listed first, followed by all expense items and their total.
Which of the following statement is False for a Simple-Step Income Statement? a. Net Profit can be calculated b. Cost of goods sold will be taken under total revenue c. Selling expenses will be calculated under total expenses d. General and Administration expenses will be taken under total expenses
In a multiple-step income statement, operating expenses are subtracted from gross profit to compute a.other income. b.income from operations. c.net loss. d.net income.
Which of the following statement is False for a Simple-Step Income Statement? a. Total expenses cannot be calculated b. Net Sales can be calculated c. Net Profit can be calculated d. Cost of goods sold will be taken under total expenses
In order to create a common size statement for the Statement of Profit and Loss, all items must: a. Divided by net earnings b. None of the above c. Multiply by net earnings d. Multiply by sales e. Divided by sales
Which of the following is not reported in an income statement under IFRS? a. Discontinued operations. b. Extraordinary items. c. Cost of goods sold. d. Income tax.
The calculation of Operating profit does not include the following item: a. Direct expenses O b. Selling expenses c. Gross Profit o d. Administrative expenses
The calculation of Operating profit does not include the following item: a. Administrative expenses b. Direct expenses c. Gross Profit d. Selling expenses
TRUE or FALSE 1. Companies are required to use two statement approach. 2. The single-step statement approach separates the presentation of profit and loss and other comprehensive income. 3. The cost of goods sold of the company represents the inventory sold to the customers for the period covered. 4. The gross income is computed by deducting all expenses from all the income of the company. 5. Freight out is an example of an administrative expense.