Which of the Following Statements Is a Normative Statement

question 105

Multiple Choice

Which of the following statements is a normative statement?

• A) Every American household should have health care insurance coverage.
• B) Military spending as a percent of government spending decreased by 5 percent in the 1990s.
• C) Welfare reform has decreased the amount the government spends on welfare.
• D) The price of computers fell last year.
• E) Fewer people are unemployed this year than last year.

Identify and explain the components and importance of the summary of significant accounting policies in financial statements.

Distinguish between the direct and indirect methods of cash flow reporting.

Recognize the impact of net profit margin ratio and total asset turnover ratio on return on assets.

Understand the concept of gross profit and how it is influenced by operating expenses and cost of goods sold.

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Definitions:

Exponential Expression

An expression that involves an exponent, indicating how many times the base is multiplied by itself.

Exponential Expression

A mathematical phrase where numbers or variables are raised to a power or exponent.

Associative Property

A mathematical rule stating that the way in which numbers are grouped in operations does not change their result.

Multiplication

A mathematical operation where a number is added to itself a certain number of times.