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:

Microchips

Small electronic components that contain the computing and logic functions of a device or product.

Tires

Rubber coverings placed around the rims of wheels of vehicles and bicycles to provide traction and absorb shocks, essential for the vehicle's performance and safety.

Trade

The act of buying, selling, or exchanging goods and services between people or entities within or across borders.

Microchips

Compact devices made of semiconductor material, which include integrated circuits, used across a wide range of tech applications.