80 - Net sales plus cost of goods sold is called gross profit. True or False 81 - Stockholders own which type of business? proprietorship a b. corporation partnership with more than ten partners C. a d partnership with only two partners 82 - A business that purchases a product from another business to sell to customers is called a service business. b. manufacturing business. merchandising business d nonprofit business I C. 83 - The person who reviews the operating and accounting control procedures adopted by management to make sure the controls are adequate may be referred to as a(n) bookkeeper a. b. accountant information processor internal auditor 84 - The person who records or enters information in accounting records may be referred to as a[n) budgeter a b journalist c accounting clerk d. scribe 3. c. 85 - The accounting function of classifying is thinking about how events affect the business I b. gathering similar events to provide information that is easy to understand. sorting and grouping similar items together d deciding the meaning and importance of the information in various reports. 86 - Examining a transaction or event to determine its fundamental significance to the business so that the relevant information may be properly processed is called recording 6 analyzing c. classifying a d. interpreting 88 - Accounts that affect owner's equity are assets, capital and revenue. a b. capital, liabilities, and expenses. c. expenses, capital, and drawing d. drawing, assets, and liabilities. 89 - Increases are entered on the credit side of a(n) asset account. I a b. liability account C. expense account d drawing account