Public Companies ________

question 224

Multiple Choice

Public companies ________.

• A) must issue an internal control report which states that the outside auditor is responsible for the adequacy of internal controls
• B) are audited by accounting firms that do not also provide certain consulting services to the public company
• C) are required by the Financial Accounting Standards Board to maintain a system of internal controls
• D) are overseen by the Public Company Accounting Oversight Board

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Definitions:

Dow Jones Industrials

A stock market index that measures the performance of 30 large, publicly-owned companies trading on the New York Stock Exchange (NYSE) and the NASDAQ.

Diversified Portfolio

A combination of various kinds of investments, such as stocks, bonds, and real estate, which aims to reduce overall investment risk.

ETFs

Exchange-Traded Funds, investment funds that are traded on stock exchanges, similar to stocks, and hold assets such as stocks, commodities, or bonds.

Capital Gain Distributions

The payments made to shareholders of a mutual fund from profits earned on the sale of securities within the fund's portfolio.