On a multi-step income statement do you have to skip an entire blank line betwee
ID: 2543640 • Letter: O
Question
On a multi-step income statement do you have to skip an entire blank line between gross profit & operating expenses, income from operations & other revenues and gains, other expenses and losses & income before income tax? Or is it okay to not skip lines and format is the same just no blank lines? On a multi-step income statement do you have to skip an entire blank line between gross profit & operating expenses, income from operations & other revenues and gains, other expenses and losses & income before income tax? Or is it okay to not skip lines and format is the same just no blank lines?Explanation / Answer
Solution:
There is no statutory requirement to skip an entire blank line between gross profit & operating expenses, income from operations & other revenues and gain, others expenses and losses & income before income tax while preparing multistep income statement.
The only thing is that it will look good presentation when we skip a line between above fields.
Therefore it is okay to not skip lines. The only thing is presentation will not look good.