Which of the Following Is an Example of a Positive

question 387

Multiple Choice

Which of the following is an example of a positive statement?

• A) Government should not redistribute income.
• B) Business firms ought to contribute more to charities.
• C) Households are the primary source of saving.
• D) The foreign sector should be more tightly controlled.

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Definitions:

Income Statement Relationships

The connections between various financial items on the income statement, illustrating how sales revenue affects net income.

Nontrade Receivables

Monetary claims against others that cannot be classified as trade receivables, often arising from financial transactions.

Loans

Sums of money borrowed that are expected to be paid back with interest.

Allowance Method

The Allowance Method is an accounting technique used to estimate and account for potential uncollectible accounts receivable, offering a more accurate reflection of the realizable value of receivables.