Which of the Following Industries Is Most Sensitive to Changes

question 14

Multiple Choice

Which of the following industries is most sensitive to changes in the business cycle?

• A)The tobacco and alcohol industries
• B)The automobile and durable goods industries
• C)The food and pharmaceutical industries
• D)All of the above are equally sensitive to changes in the business cycle

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Definitions:

AASB 141

An accounting standard issued by the Australian Accounting Standards Board that deals with the agricultural sector, specifically the accounting for agricultural activity.

IAS 16

An International Accounting Standard outlining the accounting treatments for property, plant, and equipment, including its recognition and measurement.

IAS 41

A global accounting guideline focused on managing financial records for farming activities, specifically regarding the conversion of biological assets, such as live plants and animals, into farm products.

Investment Property

Property (land or a building - or part of a building - or both) held to earn rentals or for capital appreciation or both, rather than for use in the production or supply of goods or services.