Aseparation of operating and non operating activities of a company exists in both a multiple-step and single-step income statement. a multiple-step but not a single-step income statement. a single-step but not a multiple-step income statement. neither a single-step nor a multiple-step income statement.

The correct answer is a multiple-step but not a single-step income statement.

Explanation:

A multi-step income statement has three parts. Sales revenue, operating expenses and non-operating income or expenses are the most common sections. Sales and cost of goods sold are in the first section. Commercial and administrative expenses constitute the second section. Non-operational activities include all non-repetitive lucrative activities, such as interest income and expenses and gains or losses on investment sales.

For its part, the simple step status reorganizes all items in income and expenses. The distinction between operational and non-operational activities is not necessary. For example, the income section includes sales, interest income and earnings from the sale of investments. The expenses section has a similar format. Article and administrative sales, financial expenses and the loss on sale of investments are classified within this section.