Which of the Following Statements Concerning the Distinction Between Positive

question 272

Multiple Choice

Which of the following statements concerning the distinction between positive and normative economics is true?

• A) Positive statements are concerned with what is, while normative statements are concerned with what someone thinks should be.
• B) Positive statements are concerned with what people think, while normative statements are concerned with what people do.
• C) Positive statements are true while normative statements are false.
• D) Positive statements are concerned with what is while normative statements are concerned with what will be.

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Definitions:

AASB 107

An Australian accounting standard that specifies how the movements in cash and cash equivalents should be presented in the statement of cash flows.

Direct Method

A way to present the cash flow statement, showing actual cash flows from operating activities instead of adjusting net income for accruals.

Operating Activities

The principal revenue-producing activities of an entity and other activities that are not investing or financing activities.

Statement Of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.