Listed Below Are Several Inherent Risks Associated with Stockholders’ Equity

Essay

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