[lHeE_18]

:confused: I liked to know the multiple steps in accounting income statement!its urgent because I need it this coming Tuesday!

[pready]

There are Six Sections in a Multiple-Step Income Statement.
Section 1 - Operating Section:
1. Sales Revenue - Revenues less Discounts and Returns & Allowances = Net Sales Revenue.
2. Cost of Goods Sold (COGS) - Beginning Merchandise Inventory + Purchases - Discounts =Net Purchases + Freight and Transportation In = Total Merchandise Inventory Available for Sale - Ending Merchandise Inventory = COGS
Net Sales Revenue - COGS = Gross Profit on Sales.
3. Operating Expenses which are divided into Selling Expenses and Administrative Expenses.
Gross Profit on Sales - Operating Expenses = Income from Operations.
Section 2 - Nonoperating Section:
1. Other Revenues and Gains such as Interest Revenue
2. Other Expenses and Losses such as Interest expense.
Income from Operations + Other Revenues and Gains - Other Expenses and Losses = Income before Income Tax.
Section 3 - Income Tax Section:
1. Income before Income Tax Less Income Tax = Net Income for the Year.
Section 4 - Discontinued Operations Section:
Section 5 - Extraordinary Items Section:
Section 6 - Earnings per Share Section: