Which of the Following Is Not a Typical Assertion Relating

question 65

Multiple Choice

Which of the following is not a typical assertion relating to owners' equity?

• A)The number of shares shown as issued is in fact issued.
• B)The accounting is proper for options, warrants, and other stock issue plans, and related disclosure is adequate.
• C)All owners' equity transactions have been authorized by the board of directors.
• D)The valuation of shares issued for noncash consideration is reflected at book value.

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Definitions:

Eminent Domain

The right of a government to seize private property for public use, with compensation to the owner.

Just Compensation

The fair market value that is required to be paid to an individual for property taken by the government through eminent domain.

Condemn

To officially declare a building or structure as unsafe or unfit for use, or in legal terms, to legally seize private property for public use under the right of eminent domain, with compensation to the owner.

Separation of Powers

A principle of governance in which the state's responsibilities are divided into distinct branches (typically legislative, executive, and judicial) to prevent abuse of power and ensure checks and balances.