51.Purchased goods in transit should be included in the ending inventory of the buyer if the goods were shipped FOBshipping point.
a.True
b.False
52.On the income statement in the single-step form, the total of all expenses is deducted from the total of all revenues.
a.True
b.False
53.The form of the balance sheet in which assets, liabilities, and stockholders' equity are presented in a downwardsequence is called the report form.
a.True
b.False
54.Sales are equal to the cost of merchandise sold less the gross profit.
a.True
b.False
55.Income that
cannotbe associated definitely with operations, such as a gain from the sale of a fixed asset, is listedas Other Income on the multiple-step income statement.
a.True
b.False
56.In a multiple-step income statement, the dollar amount for income from operations is always the same as netincome.
a.True
b.False
57.The single-step income statement is easier to prepare, but a criticism of this format is that gross profit and incomefrom operations are
notreadily available.
a.True
b.False
58.Gross profit minus selling expenses equals net income.
a.True
b.False
59.The account form of the balance sheet is presented in a downward sequence in three sections.
a.True
b.False
60.In the merchandising income statement, sales will be reduced by administrative expenses to arrive at operatingincome.
a.True
b.False