True/False Questions 1. A multiple-step form of income statement calculates gross profit, before subtracting operating expenses. 2. Current assets include cash, items expected to convert into cash,...

1. A multiple-step form of income statement calculates gross profit, before subtracting operating expenses.

2. Current assets include cash, items expected to convert into cash, and items that will be consumed during

a year or the normal operating cycle, whichever is shorter.

3. Current assets are listed on the balance sheet in order of liquidity.

4. Working capital is the difference between current assets and current liabilities.

5. Accounts receivable turnover is the number of times merchandise inventory turned over or was sold during the accounting period.