What Are Five External Events That May Pose a Risk

question 96

Essay

What are five external events that may pose a risk to an enterprise's ability to achieve objectives? Provide examples.

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Definitions:

Owners' Equity

The residual interest in the assets of an entity after deducting its liabilities, representing the net worth held by shareholders or owners.

Dividends

Corporation's profit distributions made as payments to its shareholders.

Financial Position

A snapshot of a company's assets, liabilities, and equity at a particular point in time, showing the economic resources it controls and owes.

Matching Principle

The Matching Principle is an accounting concept that necessitates the recording of expenses in the same period as the revenues they helped to generate, ensuring accurate financial reporting.