5. Which type of account is cost of goods sold? a. An asset account b. A liability account c. An expense account d. An income account 6. Use this information to answer the following question. If the income statement were prepared in a multistep form, income from operations would be a. $48,750. b. $41,250. c. $51,250. d. $42,500. 7. The current liability section of the balance sheet should include : a. buildings. b. goodwill. c. land held for speculation purposes. d. Accounts payable. 8. A bank reconciliation should be prepared periodically because : a. depositor's records and the bank's records are in agreement b. the bank has not recorded all of its transactions c. any differences between the depositor's records and the bank's records should be determined, and any errors made by either party should be discovered and corrected d. the bank must make sure that its records are correct 9. Which of the following goods would not be included in merchandise inventory for a purchasing company? a. Goods in transit shipped FOB shipping point b. Goods on hand in the showroom c. Goods in transit shipped FOB destination d. Goods ordered and received from the supplier