Listed Below Are Several Inherent Risks Associated with Stockholders’ Equity

question 91

Essay

Listed below are several inherent risks associated with stockholders’ equity.
REQUIRED:
List the assertion associated with each of these.
$\begin{array} { | l | l | } \hline \text { Inherent Risk } & \text { Related Assertion } \\\hline \text { 1. Proceeds are not received. } & \\\hline \text { 2. All stock repurchased is not recorded as treasury stock. } & \\\hline \text { 3. The cost of treasury stock that is subsequently retired is not } & \\\hline\end{array}$
$\begin{array} { | l | l | } \hline \text { properly allocated among the appropriate accounts. } & \\\hline \text { 4. Dividends are recorded in the wrong period. } & \\\hline \text { 5. Stock options exercised or expired remain on the } & \\\text { organization's books. } & \\\hline \text { 6. Stock issued in exchange for goods/services is not properly } & \\\text { valued. } & \\\hline \text { 7. Issuances/sales are not authorized in accordance with } & \\\text { organization's bylaws. } & \\\hline \text { 8. Dividends may be recorded and paid before being declared. } & \\\hline\end{array}$

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Definitions:

Expertise

Specialized knowledge or skill in a particular area, acquired through training, study, or practice, that sets an individual apart as an expert.

Group Meetings

Scheduled gatherings of team members to discuss topics or issues pertinent to the organization or project.

Contrary Opinions

Refers to views or judgments that oppose or contrast with a prevailing or popular stance.

Ineffective

Something that fails to produce the desired result or outcome.