Which One of the Following Components of the System of Internal

question 35

Multiple Choice

Which one of the following components of the system of internal controls sets the tone for the organization?

• A)control risk assessment
• B)control environment
• C)information and communication
• D)monitoring

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Definitions:

Common Stock

Type of security that signifies ownership in a corporation and represents a claim on part of the company's profits and assets.

Dividends

Disbursements issued by a company to its shareholders, representing a share of the company's earnings distributed to its stockholders.

Cash Dividend

A cash dividend refers to the distribution of a portion of a company's profits to its shareholders as cash.

Common Stock

Equity shares that represent ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends.