How Does a Multi-Step Income Statement Differ from a Single-Step Income Statemen

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On the other hand, a multi step income statement is different from a single step income statement as it describes more details. A single step statement adds all revenues and expenses in a single calculation while a multi step format breaks them down into operating and non operating sections. This separation of the company’s gross profit and operating income makes analysts and investors more easily to assess the core business performance. For example, the multi step statement is helpful to large businesses with complex operations, since it can help in identifying the areas that can be improved in order to enhance profitability.

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