inals Merchandising References Mailings Review View Help 63) To calculate gross profit, A) subtract Freight-In from net purchases. B) subtract ending inventory from cost of goods available for sale. C) subtract cost of goods sold from net sales. D) add freight to net purchases. 64) The income statement lists regular business expenses under the heading A) current expenses B) operating debts. C) liabilities D) operating expenses 65) Accounts payable is a(n) A) current liability B) long-term liability C) current asset. D) operating expense. 66) The left and right columns on the financial statements are used for debits and credits. Answer: TRUE OR FALSE 67) The amount for Cost of Goods Sold is found on the worksheet. Answer: TRUE OR FALSE 68) The formal income statement can be prepared from the income statement columns of the worksheet. Answer: TRUE OR FALSE 69) Gross profit minus Operating Expenses equals Net Income Answer: TRUE OR FALSE 70) The statement of owner's equity ending capital is equal to the capitll on the worksheet. Answer: TRUE OR FALSE