Question 1 (Mandatory) (1 point) Cost of Goods Sold is an operating expense on the income statement. True False Question 2 (Mandatory) (1 point) In a perpetual inventory system, a business maintains a running record of the number of units bought, sold and on hand for each inventory item. True False Question 3 (Mandatory) (1 point) The cost of inventory shifts from asset to expense when the seller fulfills its contract with the customer, delivers the goods to the buyer and recognizes revenue. True False