1. Gross profit margin is impacted by only the cost of goods sold changes. *

A) True

B) False

2. The income statement comes in only one basic formats, the multiple-step which is used to analyze the financial performance of the company. *

A) True

B) False

3. Net profit margin and operating profit margin are complements of each other and the two percentages add up to 100%. *

A) True

B) False

4. Acquisition of land is an investing cash outflow. *

A) True

B) False

5. A positive net income figure on the income statement is ultimately insignificant unless a company can translate its earnings into cash, and the only source in financial statements for learning about cash generation is the statement of cash flows. *

A) True

B) False