Multiple - include such transactions as interest revenue...

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Multiple-Step Income Statements Some contend that including other important revenue and expense classifications makes the income statement more useful. These further classifications include: 1. A separation of operating and nonoperating activities of the company. For example, companies often present income from operations followed by sections entitled “Other revenues and gains” and “Other expenses and losses.” These other categories
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Unformatted text preview: include such transactions as interest revenue and expense, gains or losses from sales of long-term assets, and dividends received. 2. A classification of expenses by functions, such as merchandising (cost of goods sold), selling, and administration. This permits immediate comparison with costs of previous years and with other departments in the same year....
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This note was uploaded on 03/08/2011 for the course ACCOUNTING 14 taught by Professor Saeedi during the Spring '11 term at Amirkabir University of Technology.

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