Which of the Following Is a Normative Statement

question 424

Multiple Choice

Which of the following is a normative statement?

• A) Owners of apartment buildings are free to charge whatever rent they want.
• B) Low rents are good because they make apartments more affordable.
• C) Low rents will restrict the supply of housing.
• D) Housing costs are rising.

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Definitions:

Bad Debts Expense

The portion of receivables that a company does not expect to collect and writes off as a loss.

Gross Accounts Receivable

The total amount owed to a company by its customers for goods or services sold on credit before any deductions for returns or allowances.

Aging of Accounts Receivable

The process of categorizing accounts receivable according to the length of time an invoice has been outstanding.

Age Group

A classification of people based on their age, often used in demographics and marketing.