Which One of the Following Is the Best Example of Systematic

question 45

Multiple Choice

Which one of the following is the best example of systematic risk?

• A)The price of tomatoes declines sharply.
• B)Inflation rises unexpectedly.
• C)Commercial airline pilots go on strike.
• D)A hurricane hits a tourist destination.
• E)People become diet conscious and avoid fast food restaurants.

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Definitions:

Perpetual Inventory System

An inventory management method where inventory levels are updated in real time with each sale or purchase transaction.

Gross Method

A method of recording purchases at the gross invoice amount before deducting any cash discounts.

Adjusted Trial Balance

A trial balance prepared after adjusting entries are made, used to verify the balance of debits and credits before generating financial statements.

Multiple-Step Income Statement

A detailed financial statement that divides revenue and expenses into separate categories, such as operating and non-operating sections, to highlight different aspects of business performance.