The correct option is B) Assets. All the assets and resources of an organization are safeguarded by the internal controls in different ways such as the physical count of inventory to eliminate the risk of theft.

Reason for incorrect option:

A) All the balance sheet accounts include assets, liabilities as well as equity. Out of which only assets are safeguarded by internal controls.

C) Liability is an obligation of any business. It is an amount borrowed by a business from an outsider of the business that is called liabilities.

D) Capital stock are recorded under the equity section of the balance sheet. Common and preferred share which are authorized to issue by a company referred to as capital stock.

Internal control

These are the standards, policies that are implemented within the organization by the managers and followed by every employee of the companies. An example of internal control is checking the price per unit that is offered to the customer before completing a sales transaction.