Which of the Following Is a Normative Statement

question 433

Multiple Choice

Which of the following is a normative statement?

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

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Definitions:

Costs Decreasing

A situation where the expenses associated with the production or operation of a business are reducing over time.

Lowest Net Income

Refers to the lowest amount of net income recorded by a company over a given period, demonstrating its worst financial performance phase.

LIFO Inventory Method

Last In, First Out, an accounting method where the most recently acquired items are the first to be sold or used.

Gross Profit

The difference between revenue and the cost of goods sold, indicating how efficiently a company uses labor and supplies in production.