#What is an advantage to using a multi-step income statement?

1.The fixed costs and variable costs are broken out separately

2.Direct expenses and indirect expenses are broken out separately

3.Net Income is shown before income taxes

4.All income items are grouped in one section, and all expenses in another

#What will a contingency note contain?

1.A disclosure of future contracts to be performed

2.A disclosure of all future commitments of the company

3.A set of criteria required to be able to recognize revenue

4.A circumstance where a company may have a liability