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19 April, 12:56

In the multiple-step income statement, cost of merchandise sold is subtracted from a. selling expenses. b. sales. c. gross profit. d. operating expenses.

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  1. 19 April, 16:53
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    b. sales

    Explanation:

    As we know that

    Income statement refers to the statement in which the revenues and the expenses incurred should be recorded

    While on the other hand the multiple-step income statement refer to the statement in which there are various level like gross profit, total operating expenses etc

    Plus we also know that

    Gross profit = Sales - cost of goods sold

    Therefore the cost of merchandise should be deducted from sales so that we can find out the gross profit
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