Multiple-step income statement definition including break down of areas in the definition. Analyzing the definition of key term often provides more insight about concepts. Multiple-Step income statement can be defined as: Income statement format that shows subtotals between sales and net income, categorized expenses, and often reports the details of net sales and expenses. Multiple-step income statement can be compared to a single step income statement, a multiple step income statement being more complex then a singe step income statement, the single step income statement having two basic categories of income and expenses, the multiple step income statement having more subcategories, the multiple step income statement adding more detail. The multiple step income stamen may break out the sales section to sales less discounts and allowances. A multiple step income statement will include cost of goods sold in a calculation of gross profit. General and administrative expenses will often be broken out in a multiple step income statement as well.
