Which of the Following Descriptions of Normative Statements Is the Most

question 206

Multiple Choice

Which of the following descriptions of normative statements is the most accurate?

• A) They are prescriptive, making claims about how the world ought to be.
• B) They are descriptive, making claims about how the world is.
• C) They are affirmative, justifying existing economic policy.
• D) They are optimistic, putting the best possible interpretation on things.

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Definitions:

Annual Report

A comprehensive report on a company's activities, financial performance, and strategy, typically published yearly for shareholders.

Form 10K

A comprehensive summary report of a company's performance that must be submitted annually to the Securities and Exchange Commission.

Operating Segments

Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

GAAP

Generally Accepted Accounting Principles, a common set of accounting principles, standards, and procedures that companies must follow when they compile their financial statements.