$2$Expenses are the costs incurred to produce revenues. These represent the Run the Business expenses. Expenses are recorded in the accounting period they benefit. Cost of goods sold expense reports the wholesale costs of inventory sold to customers during the accounting period.Net income is the difference between revenues and expenses. Net income is also referred to as profit $($loss$),$ earnings, or the bottom line. Revenues Expenses $=$ Net incomeQ$1$Circle whether the account is classified as a revenue $($Rev$),$ expense $($Exp$),$ or not reported $($Not$)$ on the income statement.a$.$Advertising expense $($Rev $/$ Exp $/$ Not$)$ d$.$Service revenue$($Rev $/$ Exp $/$ Not$)$b$.$Inventory$($Rev $/$ Exp $/$ Not$)$ e$.$Rent expense$($Rev $/$ Exp $/$ Not$)$c$.$Cost of goods sold $($Rev $/$ Exp $/$ Not$)$ f$.$Building$($Rev $/$ Exp $/$ Not$)$Q$2$Review Cool Lope, Inc. income statement above and answer the following questions:$1.$Is the income statement for Cool Lope, Inc. a $($Single$-$Step or Multi$-$Step$)$ version of the income statement? $2.$In $20$X$3$ Cool Lope, Inc. sold products to customers for $$\_\_\_\_\_\_\_\_\_\_$ that cost the company $$\_\_\_\_\_\_\_\_\_\_$ to produce$\mathrm{.}3.$The first expense for Cool Lope, Inc. that helps to determine the gross profit or how much profit the firm is generating after the cost of products or services is $($Operating Expenses $/$ Cost of