True or False

1. Net sales is not included in a multiple-step income statement.

2. The single-step and multiple-step forms of the income statement produce

the same net income.

3. The historical cost of an asset is determined by subtracting accumulated

depreciation from the cost of an asset.

4. Gross profit is not the same as gross margin.

5. An income statement provides information as to the status of a business at a specified date.

6. Liquidity refers to the speed with which the asset can be converted to an expense.

7. Long-term liabilities are obligations that will extend beyond one year or the normal operating cycle, whichever is longer.

8. Net credit sales is always shown as a separate line item on the income statement.