In Order for an Internal or External Event to Be

question 13

Short Answer

In order for an internal or external event to be recognized in an accounting system, the items making up the event must impact the financial statements and they must be sufficiently reliable and ____________________.

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often receiving dividends before common shareholders.

Noncontrolling Interest

Represents the equity interest in a portion of a subsidiary's net assets that is not attributable directly or indirectly to the parent company.

Common Stock

A type of equity security that represents ownership in a corporation, with holders usually having a vote in corporate decisions but in the last in line during liquidation.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, often receiving dividends before common shareholders and having a fixed dividend rate.