Cost of goods sold is characterized by which of the following statements? (Check all that apply.) Cost of goods sold is the money received from selling merchandise. Cost of goods sold is an expense reported on the income statement Cost of goods sold includes the expenses of buying and preparing an item for sale. Cost of goods sold is used to figure gross profit. Cost of goods sold is also called cost of sales. Cost of goods sold is an asset reported on the balance sheet. Merchandise inventory can be described as: (Check all that apply.) an account appearing on a balance sheet of a service company. products that a company owns and intends to sell. an expense account. . an account appearing on a balance sheet of a merchandiser. an account increased with a debit. an asset account