An Audit of Stockholders' Equity Ordinarily Should Include

question 55

Multiple Choice

An audit of stockholders' equity ordinarily should include:

• A)tracing individual dividend payments to the capital stock records.
• B)reviewing minutes of board meetings to determine the number of shares outstanding.
• C)confirming shares outstanding with state officials.
• D)determining that dividend declarations comply with debt agreements.

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Definitions:

Projected Benefit Obligation

An actuarial estimate of the total present value of future retirement benefits earned to date, adjusted for expected future salary increases.

Prior Service Cost

The expense recognized in pension accounting when a plan is amended to increase benefits for service provided by employees in prior years.

Ending Balance

The amount of money in an account at the end of a financial period, after all transactions have been accounted for.

Plan Assets

The resources set aside to pay employee benefits under a pension or other post-employment benefit plan.