6 Tina Catchings has just started her study of accounting. She is finding that the hardest part of understanding accounting is learning what all of the terms mean. For example, Tina is interested in putting the correct label on the obligations she has to her suppliers resulting from her purchase of inventory on account. What is the correct label? Wages payable Accounts receivable Cost of goods sold Loans receivable Accounts payable Loans payable 7 Tina Dupree is bewildered by the many different types of "profit" and "income" reported by accountants. She is interested in putting the correct label on the important quantity: "Sales minus cost of goods sold." What is the correct label? Net income Return on sales Gross profit Owners' equity Operating income 6 Tina Catchings has just started her study of accounting. She is finding that the hardest part of understanding accounting is learning what all of the terms mean. For example, Tina is interested in putting the correct label on the obligations she has to her suppliers resulting from her purchase of inventory on account. What is the correct label? Wages payable Accounts receivable Cost of goods sold Loans receivable Accounts payable Loans payable 7 Tina Dupree is bewildered by the many different types of "profit" and "income" reported by accountants. She is interested in putting the correct label on the important quantity: "Sales minus cost of goods sold." What is the correct label? Net income Return on sales Gross profit Owners' equity Operating income