Which of the Following Statements Is Normative

question 8

Multiple Choice

Which of the following statements is normative?

• A)Scientists should not make normative statements.
• B)Warts are caused by handling toads.
• C)As e-book prices fall,people buy more of them.
• D)If income increases,sales of luxury goods fall.
• E)There is more caffeine in a cup of tea than in a cup of coffee.

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Definitions:

Pro Forma Statements

Financial statements that project a company's financial performance in the future, based on certain assumptions or hypothetical conditions.

Financial Statements

Formal records that detail the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

Proposed Transactions

Potential future financial activities or deals that are being considered but have not yet been executed or finalized.

Interim Statements

Financial reports prepared and presented for periods shorter than a fiscal year, such as quarterly or monthly financial statements.