Hidden knowledge (any chap)

Question 1

Which financial statement follows a different rule when it comes to listing the date?

Answer 1

The Statement of Financial Position which justs lists the date

Every other statement (Statement of Income, Statement of Changes in Equity, and Statement of Cash Flows) follows the form Period Ended Date

Question 2

What do brackets mean for a value in a statement?

Answer 2

It means we have to deduct (subtract)
for example: dividends declared

Question 3

Lets say we have the transaction : “Freight charges of $750 were paid by the appropriate company on June 2” (FOB shipping point)

What might the journal entry look like (what is being debited and credited)?

Answer 3

We would list the freight charges as “inventory”

Dr. Inventory 750
Cr. Cash 750

Question 4

What is the primary difference between perpetual and periodic journal entries.

Answer 4

Perpetual reduces Inventory, while Periodic records a Purchase Discount instead!