4. A purchase return or allowance under a perpetual inventory system is credited to: A) accounts payable B) purchase return and allowance C) inventory D) purchases E) None of the above 5. Inventory turnover is calculated as: A) the cost of goods sold divided by average inventory B) the cost of goods minus average inventory C) the cost of goods times average inventory D) the average inventory divided by the cost of goods sold E) None of the above 6. You have purchased some T-shirts for $1,000 and can sell them immediately for $1,500. What accounting assumption or principle governs the amount at which to record the goods, you purchased? a. Going-concern assumption b. Cost principle of measurement c. Economic entity assumption d. Reliability characteristics 7.What is accounting equation 8. List the major categories of accounts that appear on the income statement, and describe a typical heading for this statement: a. The Income Statement includes assets, liabilities and owner's equity and is prepared as of a particular date. b. The Balance Sheet includes assets, liabilities and owner's equity and the heading reveals that it is prepared as of a particular date. c. The Balance Sheet includes revenues, expenses and net