Can I write PHP code across multiple lines per statement?

Is it okay to write code like this, with statements spanning across multiple lines?

$db_selected = 
mysql_select_db(
    'my_dbase', 
    mysql_connect(
        'localhost', 
        'mysql_user', 
        'mysql_password'
    )
);

In HTML, new lines are ignored, but in PHP I sometimes get errors. I'm not too familiar with PHP, but thought this should be just fine, no?