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:

Oxytocin

A hormone and neurotransmitter involved in childbirth and lactation, also known to play a role in social bonding, sexual reproduction, and during and after childbirth.

Work Stress

The response individuals may have when presented with work demands and pressures that are not matched to their knowledge and abilities.

"Tend And Befriend"

A theory suggesting that in response to stress, individuals (particularly women) are biologically predisposed to care for offspring (tend) and seek social support (befriend) rather than exhibiting the "fight or flight" response.

Oxytocin

A hormone and neurotransmitter involved in childbirth and lactation, also known as the "love hormone" for its role in social bonding.