Multiple-Step

(noun)

Revenues are detailed, cost of goods sold is subtracted to show gross profit, operating expenses are separated from other expenses, and operating income is separated from other income.

Related Terms

Examples of Multiple-Step in the following topics:

  • Income Statement Formats

    • Income statements are commonly prepared in two formats: multiple-step and single-step.
    • Income statements are commonly prepared in two formats: multiple-step and single-step.
    • In the multiple-step format revenues are often presented in great detail, cost of goods sold is subtracted to show gross profit, operating expenses are separated from other expenses, and operating income is separated from other income.
    • In the single-step format, all expenses are combined in a single section including cost of goods sold.

  • Introduction to the Income Statement

    • There are two types of income statement, a single-step income statement and a multi-step income statement.
    • The single-step income statement takes a simpler approach, totaling revenues and subtracting expenses to find the bottom line.
    • The multi-step income statement is more complex.
    • It takes several steps to find the bottom line, starting with the gross profit.
    • The final step is to deduct taxes, which finally produces the net income for the period measured.

  • Closing the Cycle

  • Impairment Measurement

    • Summarize the steps a company takes to measure an assets impairment

  • Categories of Goods Included in Inventory

    • A queue leading to a production step shows that the step is well buffered for shortage in supplies from preceding steps, but may also indicate insufficient capacity to process the output from these preceding steps.

  • What Is the Accounting Cycle?

    • As we walk through the steps of the accounting cycle, consider the following example.
    • The accounting cycle is a series of steps performed during the accounting period (some throughout the period and some at the end) to analyze, record, classify, summarize, and report useful financial information for the purpose of preparing financial statements.
    • There are eight steps in the accounting cycle and they are as follows:
    • As we walk through the steps of the accounting cycle, consider the following example.

  • Special Reporting

    • Special, or irregular, items appear on single step or multi-step income statements, and require special reporting procedures.

  • Differences Between GAAP and IFRS and Implications of Potential Convergence

    • The goal of and various proposed steps to achieve convergence of accounting standards has been criticized by various individuals and organizations.
    • In the United States, the Securities and Exchange Commission (SEC) has been taking steps to set a date to allow U.S. public companies to use IFRS,and perhaps make its adoption mandatory.

  • Debt-to-Equity Ratio

    • When used to calculate a company's financial leverage , the debt-to-equity ratio includes only long-term liabilities in the numerator and can even go a step further to exclude the current portion of the long-term liabilities.

  • The Post-Closing Trial Balance

    • The post-closing trial balance is the last step in the accounting cycle.