Which of the Following Is a Normative Statement

question 37

Multiple Choice

Which of the following is a normative statement?

• A) The rich should face higher income tax rates than the poor.
• B) If income increases, sales of luxury goods fall.
• C) As compact disc prices fall, people buy more of them.
• D) There is more caffeine in a cup of tea than in a cup of coffee.

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Definitions:

Performance Obligations

Promises in a contract to transfer goods or services to a customer, central to revenue recognition principles.

Transaction Price

The total monetary value exchanged or agreed upon in a transaction.

Revenue Recognition

The accounting principle that dictates the conditions under which income becomes recognized as revenue.

Core Principle

A fundamental belief or guideline that serves as a foundation for a system of belief or behavior or for a chain of reasoning.