Risk Associated with Specific Industries or Companies Is Referred to as Business-Specific

question 79

True/False

Risk associated with specific industries or companies is referred to as business-specific risk. It is also known as unsystematic risk and cannot eliminated through diversification.

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Definitions:

Credits

Entries in accounting that increase liabilities or equity, or decrease assets, representing the opposite of debits.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate revenue and expenses to the period in which they actually occurred.

Accounts

Records within an accounting system that are used to store and summarize transactions related to specific assets, liabilities, equity, revenue, and expenses.