QUESTION 4 Solvency is determined using the income statement True False QUESTION 5 Gross margin (gross profit) is calculated by: Revenue from sales - operating costs Revenue from sales + cost of goods sold gross margin-operating expenses Revenue from sales - total cost of goods sold QUESTION 6 Match the accounting definition with the term that best fits each description When there is money left over after subtracting liabilities A. Solvency from assets B. Long-Term Liabilities When there is not money left over after subtracting liabilities from assets C. Current Liabilities D. Fixed Assets Must be paid within next period E. Insolvency Will not turn into cash within the next period Due after the next period