1. The most significant expense for most manufacturing companies is called Cost of Goods Sold 2. Gross margin divided by net sales equals _ revenue less cost of goods sold as a percent of total revenue 3. Expenses, other than cost of goods sold, that are incurred in the day-to- day activities of the entity are called _operating expenses 4. Gross profit less operating expenses is called 5. In order for revenue to be recognized, it must be both Earned and Realized 6. is calculated by taking net income divided by the average number of common shares outstanding. 7. The section of a Cash Flow Statement that includes changes in short-term assets & short term liabilities is called the Changes in Activities. 8. The section of a Cash Flow Statement that includes changes in long-term assets is called the Changes in Activities. 9. The section of a Cash Flow Statement that includes changes in long-term liabilities and equity is called the Changes in Activities. 10. Changes in assets have the changes in liabilities and equity have the cash. effect on cash, while effect on