Multiple Step Income Statements Classified Financial Statements

Multiple Step Income Statements Multiple Step Income Statements show all steps necessary to determine Net Income. Multiple Step Income Statements are divided into two sections: Revenues and Expenses from Operating Activities. Revenues and Expenses from Non-operating Activities.

Operating Activities 3 Sections: Gross Profit, Selling Expenses, Administrative Expenses Selling Expenses – All expenses directly related to selling a product (Salaries, Advertising, Freight Out) Administrative Expenses – General expenses related to business (Rent, Utilities, Insurance)

Non-operating Activities 2 Sections: Other Revenues and Gains, Other Expenses and Losses Other Revenue and Gains – Income from investments, gain from the disposal of capital assets. Other Expenses and Losses – Interest Expense on loans, losses from vandalism and accidents, losses from disposal of assets, losses from strikes.