Which measurement is highlighted in the multi-step format for the income statement?

• A. Net income
• B. Operating income
• C. Earnings per share
• D. Gross margin

Answer: (B)

In a multi-step income statement, the focus is on how much profit comes from regular operating activities. After revealing net sales and cost of goods sold to get gross profit, the next major calculation subtracts operating expenses (like selling and administrative costs) to arrive at operating income. This line is highlighted because it shows the earnings generated from core operations before non-operating items and taxes. Net income reflects after interest and taxes, gross margin shows profitability of production (gross profit), and earnings per share is a per-share measure derived from net income. So the emphasized measurement in this format is operating income.