Which One of the Following Is an Example of Unsystematic

question 6

Multiple Choice

Which one of the following is an example of unsystematic risk?

• A) the inflation rate increases unexpectedly
• B) the federal government lowers income taxes
• C) an oil tanker runs aground and spills its cargo
• D) interest rates decline by one-half of one percent
• E) the GDP rises by 2% more than anticipated

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Definitions:

Closing Entry

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thus preparing the books for the next period.

Reversing Entry

An accounting entry made at the beginning of a period to reverse the effects of certain adjustments made in the previous period.

Salary Expense

The cost incurred by a business to pay its employees.

Financial Statement

An organized log of economic actions and the financial situation of a firm, an individual, or any other unit.