Normative Statements Are

question 60

Multiple Choice

Normative statements are

• A)prescriptive,whereas positive statements are descriptive.
• B)descriptive,whereas positive statements are prescriptive.
• C)backward-looking,whereas positive statements are forward-looking.
• D)forward-looking,whereas positive statements are backward-looking.

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Definitions:

TIE Ratio

A financial performance indicator that shows a company's capacity to cover its interest expenses with its current earnings, highlighting its financial health and stability.

Target

In the business context, it generally refers to a specific objective or goal that a company or individual aims to achieve.

Operating Costs

Operating costs, or operating expenses, are the costs required for the day-to-day maintenance and administration of a business.

Financial Position

The status of a company or individual's assets, liabilities, and equity at a specific point in time, summarizing the economic resources and obligations.