A Normative Statement Is

question 415

Multiple Choice

A normative statement is

• A) about what ought to be.
• B) about what is.
• C) always true.
• D) one that does not use marginal concepts.

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Definitions:

External User

External User refers to individuals or entities outside of a company who use its financial statements to make decisions, such as investors, creditors, and regulatory agencies.

Federal Government

The national government of a federated state, which holds the authority to govern the issues that affect the entire country.

Financial Accounting Standards Board

An independent organization responsible for establishing and improving financial accounting and reporting standards in the United States.

Accounting Principles

Fundamental guidelines or rules that form the basis for accounting practices and financial reporting.