Chapter 4 - Chapter 4(a)P&G uses the multiple-step income statement because it separates operating from nonoperating activities A multiple-step income

Chapter 4 - Chapter 4(a)P&G uses the multiple-step income...

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Chapter 4 (a)P&G uses the multiple-step income statement because it separates operating from nonoperating activities. A multiple-step income statement is used to recognize additional relationships related to revenues and expenses. P&G recognizes a separation of operating transactions from nonoperating transactions. As a result, trends in income from continuing operations should be easier to understand and analyze. Disclosure of operating income may assist in comparing different companies and assessing operating efficiencies. (b) P&G operates in the consumer products market. The company separates its operations into five segments: (sales by segment) Fabric and Home Care, 30% Beauty Care, 24% Baby and Family Care, 19%
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