Table 8.3 Consider the Following Two Securities X and Y

question 66

Multiple Choice

Table 8.3
Consider the following two securities X and Y.
-Which asset (X or Y) in Table 8.3 has the least total risk? Which has the least systematic risk?

• A) X; X
• B) X; Y
• C) Y; X
• D) Y; Y

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Definitions:

Perpetual Inventory System

A technique in inventory accounting that uses computerized point-of-sale systems and enterprise asset management software for the immediate recording of inventory transactions.

Gross Method

An accounting practice where the purchase discount is not recorded at the time of purchase but is instead recognized when the discount is actually taken.

Merchandise Return

The process of a customer returning previously purchased merchandise to the seller, usually for a refund, store credit, or an exchange.

Periodic Inventory System

A method of inventory accounting where updates to inventory levels are made on a periodic basis rather than after each transaction.