Beach and Poole, CPA is reviewing income statement presentation with some interns who are working with the firm during the summer break. The interns were asked to list three things that were true about the multiple-step income statement. Choose the item below that is a true statement.

A. The multiple-step income statement lists gains and losses as part of income from normal operations.

B. The multiple-step income statement shows income or loss from operations after the gross margin and operating expenses lines but before other revenues and gains.

C. Freight out is classified as part of the inventory cost and moved to cost of goods sold when the item is purchased by a third party.

D. Gain/loss on the sale of equipment held for disposal from discontinued operations is included in the continuing operations section of the income statement.