Author Question: The statement of changes in shareholders' equity ________. A) describes the financial situation ... (Read 39 times)

deesands · **on:** Jul 5, 2018

The statement of changes in shareholders' equity ________.

A) describes the financial situation of a company at a specific point in time
B) is a summary of all of the revenues minus all of the expenses for an accounting period
C) shows the changes that took place in the amount of shareholders' equity during a period
D) is a list of all the cash collected and cash paid during a period

Question 2

Cumberland Co sells 2,000 of inventory to Hancock Co for cash. Cumberland paid 1,250 for the merchandise. Under a perpetual inventory system, which of the following journal entry (ies) would be recorded?
a. debit Cash, 2,000; credit Merchandise Inventory, 1,250
b. debit Cash, 2,000; credit Sales, 2,000; and debit Cost of Merchandise Sold, 1,250; credit Merchandise Inventory, 1,250
c. debit Cash, 1,250; credit Sales, 1,250
d. debit Accounts Receivable, 2,000; credit Sales, 2,000; and debit Cost of Merchandise Sold, 1,250; credit Merchandise Inventory, 1,250