Which of the Following Is a Normative Statement

question 174

Multiple Choice

Which of the following is a normative statement?

• A) The price of candy bars is $1.25 each.
• B) Candy bars are more expensive than newspapers.
• C) You should eat less candy.
• D) Popcorn and candy are sold in movie theaters.

Differentiate between temporary and permanent accounts.

Apply journal entries to close various types of accounts, including revenue, expense, and withdrawal accounts.

Discern the effects of errors in closing entries on financial statements.

Assess the financial outcome (net income or net loss) through closing entries.

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Definitions:

New Equilibrium Quantity

The quantity of goods or services supplied and demanded after a change in the market has led to a new equilibrium price.

Ticket Scalping

The practice of buying tickets for an event and reselling them at a higher price, often to benefit from high demand and limited supply.

Economic Losses

Economic losses refer to the reduction in financial value experienced by individuals, businesses, or the economy as a whole due to adverse events or decisions.

Economic Gains

Increases in economic welfare, often measured by improvements in income, production, or satisfaction levels.