Positive economic statements refers to the statements which are normally fact based, precise and easily measurable. For example, education facilities provided by the government increases the public expenditure. This is a fact based statement and the value of this statement is not judged. It can be proven by researching about the education facilities provided by the government.
Normative economic statements refers to the statements which are value based and opinion oriented. These statements includes the people desirability, feelings, situations, economic development. The basic aim of these statements is summarize the people's wants into the programs and the economic development by asking various questions.
Orange Co. sells merchandise on credit to Zea Co. in the amount of $9,000. The invoice is dated on September 15 with terms of 1/15, net 45. The amount of the discount is $90 and the date must the invoice be paid in order for the buyer to take advantage of the discount is September 30.
To solve this problem, we will use a valuation method
named income valuation includes discounting of the profits the stock will
carry to the stockholder in the probable future, and a final value on disposal.
Monetary unit assumption refers to a concept used in accounting practices where all business transactions and related events can be measured and expressed in terms of monetary units. This is done since monetary units are stable and dependable. The only language businesses understand is money.