Thank you for the opportunity to help you with your question! IF you have any clarification, please don't hesitate to ask and I will do my best to answer.
NO, the net income shown on a
multi-step income statement will NOT differ from the amount shown on a
single-step income statement.
Both types of income statement
will result to the SAME amount of net income. Their difference lies on how they
presented or arrived at that net income. In a multi-step income statement,
gross profit is presented separately, then the selling, administrative, and
general expenses are grouped under operating expenses, then non-operating items
such as interest income and expenses are also presented separately from
operating items, then the income taxes are presented, and finally, the net
income. On the other hand, in a single-step income statement, everything
is grouped together. The gross profit is not presented, the operating and
non-operating items are grouped together. The statement doesn’t distinguished
from operating expenses to non-operating expenses. Everything is deducted or
added to sales revenue to arrive at net income.
Please let me know if you need any clarification. I'm always happy to answer your questions.
Sep 13th, 2015
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