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Identify the four major assertions made regarding stockholders' equity and describe one control activity for each.
Ordinary Loss
A loss incurred in the normal operation of a business that can be used to offset other types of income for tax purposes.
Interest Income
Earnings from investment in interest-bearing financial instruments, such as savings accounts, CDs, or bonds.
FMV
Fair Market Value (FMV) is the estimated price that an asset would sell for on the open market between a willing buyer and a willing seller.
Basis
The initial cost of an asset, adjusted for factors such as depreciation or improvements, used to calculate capital gains or losses for tax purposes.
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