What is an advantage of using the multiple-step income statement?

It clearly states the gross profit of a firm

Explanation:

Income statement can be defined as the earnings report or a profit and loss statement during a specific period of time. It is the summary of the fiscal operation of a firm during a time frame. The period of time could be quarterly or annually.

We have multiple step income statement produced by companies with specific business structure and single step income statement are produced by other companies.

Multiple step income statement has an advantage of helping firms to clearly state their gross profit.

Gross profit= Sales revenue - Cost of goods

It also gives insight to operating profit of a firm.

Operating Profit= Gross profit - operating expenses

Multiple step income statement helps to state all sources of income and expenditure of a firm.

3rd the reason why is because of management and leadership

answerbuying in bulk;