The Opinion Section on a Special Purpose Financial Report Audit

question 91

True/False

The opinion section on a special purpose financial report audit is similar to that required for audit reports on general purpose financial reports.

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Definitions:

Paid-In Capital

Paid-In Capital is the amount of money investors have paid to a company in exchange for shares of its stock, reflecting the additional capital contributed by shareholders over the par value of the shares.

Par Value

The face value of a stock or bond as stated by the issuing company, which does not necessarily match the market value.

Common Stock

A type of equity security that represents ownership in a corporation, entitling the holder to vote on corporate matters and receive dividends.

Dividends in Arrears

Unpaid dividends on cumulative preferred stock, which must be paid out before any dividends can be issued to common stockholders.