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A. Operating and non operating data B. Income tax expense and administrative expenses. C. Cost of goods sold expense and administrative expense. D. The effect on income taxes due to extra ordinary items and the effect on income taxes due to income before extraordinary items.
Multiple steps contain multiple subtotals such as for Gross Margin, Total Operating Expenses, Other Income.
In single step this distinction is carried out and all expenses are grouped which does not give a very clear picture and also does not show Gross Profit figure as COGS is grouped with other admin costs.
Hence, C is the closest answer.
C. Cost of goods sold expense and administrative expense.
Because single step contains only one deduction from revenue, but in multi step income statement we show separate Gross profit then operating expenses are dedcuted from this gross profit and then other expneses are deducted. Closest answer is C.
A. is the answer. The major distinction is the operating and nonoperating data where single-step income statement will provide one grouping for revenues and other one for expenses the multiple-step shows the operating revenues and expenses in a separate section from nonoperating.
Agreed with colleagues answers
