PRACTICE TOPIC
Multi-Step Income Statement
Practice Multi-Step Income Statement with 24 accounting challenges on Accountely — instant IAS/IFRS-compliant scored feedback on every submission.
What multi-step income statement covers
A multi-step income statement separates results into stages — gross profit, operating profit, then profit before and after tax — so a reader can see which part of the business generated the result. The subtotals are the whole point: they distinguish trading performance from financing costs and one-off items.
These challenges give you a list of balances and ask for a correctly ordered statement with every subtotal in place.
Where marks are usually lost
- Missing a required subtotal, which breaks the logic of the statement.
- Classifying interest or tax as an operating expense.
- Placing other income above gross profit.
Further readingIncome statement vs balance sheet
24 Multi-Step Income Statement practice challenges
TitleTypeDifficulty
Velora Trading - Financial Statements from an Adjusted Trial Balance Multi-StatementmediumFernhollow Corporation - Income Statement Income StmtmediumRedwood Athletics - Multi-Step Income Statement (US GAAP) US GAAPIncome StmtmediumKaberi Textile Ltd. - Multi-Step Income Statement with a Periodic COGS Schedule US GAAPIncome StmthardAldermoor Trading - Multi-Step Income Statement (IFRS) Income StmtmediumFairhaven Trading - Financial Statements with an Allowance for Doubtful Accounts Multi-StatementmediumAtlas Manufacturing - Complete Cycle: Income Statement, Balance Sheet and Cash Flow Multi-StatementhardMaplewood Outfitters - Multi-Step Income Statement with a Periodic COGS Schedule Income StmtmediumOakridge Ltd. - Income Statement Income StmtmediumCalloway Group - Diluted EPS with Share Options (Treasury Stock Method) Income StmthardHarbor Freight Co. - Multi-Step Income Statement (US GAAP) US GAAPIncome StmtmediumThornbury Imports - Periodic Multi-Step Income Statement (IFRS) Income StmtmediumSilverpine Group - Income Statement with Basic and Diluted Earnings per Share Income StmthardVantage Electronics - Multi-Step Income Statement (US GAAP) US GAAPIncome StmtmediumAshford Trading - Multi-Step Income Statement (US GAAP) US GAAPIncome StmtmediumHarborview Trading - Periodic System: Income Statement and Balance Sheet Multi-StatementhardHalcyon Digital - Diluted Earnings per Share with Convertible Bonds Income StmthardHollowmere Industries - Income Statement with Discontinued Operations and EPS (US GAAP) US GAAPIncome StmthardFenmore Furniture - Fixed Production Overheads, Normal Capacity and an NRV Write-Down (IAS 2) Multi-StatementhardAurora Retail Corporation - Multi-step Income Statement with Discontinued Operations Income StmthardCobalt Ridge Ltd - Three Statements with a Non-cash Share Issue for Equipment Multi-StatementhardNorthgate Supplies Ltd - Year-End Close: Adjustments, Adjusted Trial Balance and All Three Statements Multi-StatementhardKestrel Group - Discontinued Operations: Income Statement and Statement of Financial Position Multi-StatementhardSilvergate Products - Income Statement and Direct-Method Cash Flow with Supporting Schedules Multi-Statementhard