Which of the Following Is a Normative Statement

question 418

Multiple Choice

Which of the following is a normative statement?

• A) Studying more hours leads to an increase in your GPA.
• B) Taking extra vitamin C prevents catching a cold.
• C) States should require all motorcycle riders to wear helmets to reduce the number of riders killed.
• D) An increase in tax rates means people work fewer hours.

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Definitions:

Accounts Receivable

Funds that are owed to a company by customers for goods or services delivered or used but not yet paid for.

Bad Debt Expense

An expense recognized when a company determines that a customer's debt is no longer collectible.

Cash Realizable Value

The amount of money that could be realized from assets if they were sold, after settling any associated costs.

Allowance Method

The allowance method is an accounting technique that enables companies to anticipate and adjust for expected bad debts or credit losses in their financial statements.