Which of the Following Is a Normative Statement

question 40

Multiple Choice

Which of the following is a normative statement?

• A) You should eat less candy.
• B) The price of candy bars is $1.25 each.
• C) Popcorn and candy are sold in movie theaters.
• D) Candy bars are more expensive than newspapers.

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Definitions:

Maintenance Cost

Expenses incurred to keep an asset in operational condition or restore it to its operational condition.

Tax Rate

The proportionality of income subject to tax for either a person or a business.

Discount Rate

This refers to the interest rate applied for computing the present value of forthcoming cash flows in the context of discounted cash flow analysis.

Present Value

The current valuation of future monetary sums or cash flow streams, using a given return rate for discounting.