Which of the Following Factors Indicate Higher Inherent Risks

question 29

Multiple Choice

Which of the following factors indicate higher inherent risks?

• A)Industry subject to changing trends
• B)Demand is not seasonal
• C)Industry has low chance of technological obsolescence
• D)Steady profitability

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Definitions:

Administrative Expenses

Costs related to the general administration of a business, such as salaries of office staff, rent, and utilities.

Cash Basis

A method in accounting where revenues and expenses are recorded only when cash is received or paid out, respectively.

Statement of Cash Flows

A financial statement that summarizes a company's cash inflows and outflows over a specific period.

Sales Adjusted

A correction made to sales figures to account for various factors such as returns, allowances, or discounts.