Which One of the Following Is an Example of Unsystematic

question 106

Multiple Choice

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

• A)income taxes are increased across the board
• B)a national sales tax is adopted
• C)inflation decreases at the national level
• D)an increased feeling of prosperity is felt around the globe
• E)consumer spending on entertainment decreased nationally

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Definitions:

Indirect Method

A cash flow statement reporting approach that starts with net income then adjusts for non-cash transactions and changes in working capital to calculate cash flow from operating activities.

Operating Activities

Business actions directly related to the production and delivery of goods and services.

Investing Activities

Transactions involving the purchase or sale of long-term assets and investments, as reported in a company's statement of cash flows.

Noncash Investing

Transactions that involve the acquisition or disposal of non-cash assets, such as property, plant, and equipment, through means other than cash payments.