In a periodic inventory system, purchase returns and allowances and purchase discounts are considered contra liability accounts O True False Net purchases caption on the multi-step income statement is calculated by subtracting purchase discounts and purchase returns and allowances from purchases True O False The entry to record the purchase of inventory on account in a perpetual inventory system includes 'debit to the Purchases account O True O False Sales revenue and Net sales are synonymous terms. True O False The preparation of the income statement for a merchandising company that is following international financial reporting standards (IFRS) is not significantly different from the approach used by companies following accounting standards for private enterprises (ASPE) OO O True False In a periodic inventory system cost of goods sold is determined by subtracting the ending inventory from the cost of goods available for sale O True O False The adjusting entry to record inventory shrinkage would include a debit to the cost of goods sold account in a perpetual inventory syste O True False The faster the sale of inventory and the collection of cash, the higher the profits will be for a business. 0 True O False Gross margin minus operating expenses equals income from operations on a multi-step income statement O True O False