What is the order of the subtotals that appear on a​ multi-step income​ statement? A. Operating​ Income, Gross​ Profit, Net​ Income, Total Other Income and Expenses B. Gross​ Profit, Operating​ Income, Total Other Income and​ Expenses, Net Income C. Gross​ Profit, Operating​ Income, Net​ Income, Total Other Income and Expenses D. Total Other Income and​ Expenses, Operating​ Income, Gross​ Profit, Net Income

Respuesta :

Answer:

B. Gross​ Profit, Operating​ Income, Total Other Income and​ Expenses, Net Income

Explanation:

In multi step income statement first of all we calculate the gross profit by subtracting cost of goods sold from revenue. After that we deduct all the operating expenses to reach on the operating income. Now total other income and expenses are adjusted in the operating income to make income before interest and tax. At the end we reach on the net income after deducting interest and tax expenses.