Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Multi-step Income Statement

Financial Accounting

4. Merchandising Operations

Multi-step Income Statement

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following is included in a multi-step income statement?

Operating income

Gross profit

Retained earnings

Total assets

Previous problemNext problem

Verified step by step guidance

Understand the structure of a multi-step income statement. It is designed to provide detailed information about a company's financial performance by separating operating activities from non-operating activities.

Identify the key components of a multi-step income statement. These typically include gross profit, operating income, and net income, among others.

Gross profit is calculated as:

Gross Profit = Net Sales - Cost of Goods Sold

. This figure is included in the multi-step income statement to show the profitability of core business operations.

Operating income is calculated as:

Operating Income = Gross Profit - Operating Expenses

. This figure reflects the income generated from normal business operations and is also included in the multi-step income statement.

Retained earnings and total assets are not part of the multi-step income statement. These are reported in other financial statements, such as the statement of retained earnings and the balance sheet, respectively.