Which of the Following Is Not Part of the Control

question 57

Multiple Choice

Which of the following is not part of the control environment?

• A)Management philosophy and operating style.
• B)Methods of assigning authority and responsibility.
• C)Personnel policies and practices.
• D)Control activities.

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Definitions:

Retained Earnings

Retained Earnings represent the cumulative amount of net income earned by a company that is reinvested in the business, not distributed to shareholders as dividends.

Cumulative Preferred Stock

A type of preferred stock where dividends accumulate if not paid in a given period and must be paid out before dividends to common stockholders.

Cash Dividend

A payment made by a company out of its earnings to shareholders in the form of cash.

Market Price

The current rate for transactions involving a service or asset.