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Multiple-step income statement

The multiple-step income statement is an income statement that shows several steps in determining net income.

Two of these steps relate to the company’s principal operating activities. A multiple-step statement also distinguishes between operating and non-operating activities. Finally, the statement also highlights intermediate components of income and shows sub groupings of expenses.

The multi-step income statement begins by presenting sales revenue. It than deducts contra-revenue accounts- sales returns and allowances, sales discounts- to arrive at net sales.

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