Which of the Following Is an Example of a Normative

question 60

Multiple Choice

Which of the following is an example of a normative statement?

• A) Tom is a college student.
• B) Immigration should be allowed in the United States.
• C) The cost of basic health insurance rose from the previous year.
• D) The federal minimum wage is $7.25.

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Definitions:

Allowance for Doubtful Accounts

A financial accounting tool used to estimate the amount of receivables that will likely be uncollectable.

Bad Debt Expense

An accounting term representing the amount of revenue considered uncollectible from customers or clients, typically recorded as an expense.

Credit Sales

Sales made on credit, allowing customers to purchase goods or services and pay at a later date.

Allowance for Doubtful Accounts

A contra-asset account that represents the estimated portion of accounts receivable which may not be collected due to customer defaults.