Q: I have racked my brain on this and I cannot come up with an answer. If there were a business that did not have a cost of goods figure, would they still use a multi-step income statement?
A: They do not absolutely have to use a multi-step income statement but this is still an option. They can use single-step (revenues and gains minus expenses and losses) or multi-step (which differentiates between operating and non-operating revenues and expenses and gains and losses). Either format is fine.