Which of the following statements best describes a key difference between the single$-$step income statement format and the multi$-$

step income statement format?

The multi$-$step income statement is typically used only for internal reporting purposes while the single$-$step income

statement is used for external financial reporting.

A single$-$step income statement provides a detailed breakdown of revenues, costs, and expenses as opposed to a multi$-$step

income statement that does not differentiate between operating and non$-$operating items.

A multi$-$step income statement distinguishes between operating and non$-$operating activities and includes sub$-$totals for

gross profit and operating income, unlike a single$-$step income statement.

Both single$-$step and multi$-$step income statements categorize expenses by function, such as cost of goods sold and

administrative expenses, but only the single$-$step income statement reports operating income.