Which of the Following Is a Normative Statement

question 11

Multiple Choice

Which of the following is a normative statement?

• A) The current exchange rate is 0.7 British pounds per U.S.dollar.
• B) In January, the average temperature in Fargo, North Dakota, is 56 degrees.
• C) Winters in Arkansas are too cold.
• D) On average, people save 15% when they switch to GEICO.
• E) University of Virginia graduates earn more than Duke University graduates.

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Definitions:

Straight-Line Method

A technique for calculating depreciation or amortization that uniformly distributes the cost of an asset across its lifespan.

Depreciation Expense

The allocation of the cost of a tangible fixed asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

Installation Costs

Expenses related to setting up or installing equipment, machinery, or other assets for operational use.

Capitalize

The process of recording an expenditure as an asset on a balance sheet, rather than expensing it immediately, spreading its cost over its useful life.