Positive Analysis

question 22

Multiple Choice

Positive analysis:

• A) involves the formulation and testing of hypotheses.
• B) involves value judgments concerning the desirability of alternative outcomes.
• C) weighs the fairness of a policy.
• D) examines if the outcome is desirable.

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Definitions:

Freight In

A cost associated with transporting goods into a business, often included in the cost of goods sold because it directly relates to the cost of bringing inventory to the business.

Contra Account

An account used in the general ledger to reduce the value of a related account without adjusting the original account directly.

Sales Returns

Transactions where customers return previously purchased merchandise, resulting in a refund or credit.

Accumulated Depreciation

represents the total amount of depreciation expense that has been recorded for an asset since it was acquired.