Which of the Following Is an Example of a Normative,as

question 52

Multiple Choice

Which of the following is an example of a normative,as opposed to positive,statement?

• A)Universal health care would be good for U.S.citizens.
• B)An increase in the cigarette tax would cause a decrease in the number of smokers.
• C)A decrease in the minimum wage would decrease unemployment.
• D)A law requiring the federal government to balance its budget would increase economic growth.

---

Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances in temporary accounts to permanent accounts, preparing the books for the next accounting period.

Adjusting Entries

Entries in the books of accounts made during the final part of an accounting cycle to distribute profits and costs to their rightful period.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts.

Adjusting Entries

Records entered into accounting logs at the close of an accounting period to assign earnings and expenses to the period they truly happened.