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3 years ago

Normative and positive statements.

Business

1 answer:

deff fn [24]3 years ago

6 0

Answer:

a. positive

b. normative

c. positive

d. normative

Explanation:

Note that a normative statement as used in economics refers to a view of what should be done, or how things or policies should be or not be. While the Positive statement gives a point blank description of what the state of things are.

a. It is a fact of course that in the past decades U.S. companies have outsourced millions of job overseas, thus this is a positive (descriptive) statement.

b. By saying companies that outsource jobs are acting immorally indicates a normative or judgemental view of what is morally right.

c. This statement is a fact, because such actions is in line with economic theory; in effect would stop outsourcing jobs.

d. This is rather a view of what should be done. Which clearly indicates the statement as normative.

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Credit sales 172,000 collections on accounts receivable during the year 170,000 cash sales 818,000 unadjusted debit balance in a

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Answer:

$250 ( C )

Explanation:

using the given data below is the entry

The adjusting entry to recognize bad debts will include a debit to bad debt expense for

<h3> particulars amount</h3>

Beginning accounts receivable 14000

+ Credit sales made during the year 172000

(-) collections from debtors (170000)

(-) expected salary return & allowances for credit sales (2000)

Ending accounts receivable 14000

Percentage of bad debt 1.5%

Total bad debts balance required ( 14000*1.5%) 210

+ Already debit balance in allowance for doubtful account 40

Total debit to be made in bad debts 250

Total debts = total bad debts balance required + already debit balance in all

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3 years ago

An economic contraction caused by a shift in aggregate demand causes prices to a. rise in the short run, and rise even more in t

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Answer:

c. fall in the short run, and fall even more in the long run.

Explanation:

The aggregate demand shifts to the left in recession or contractions, in consequence the level of prices falls. For this analysis we consider the shor-run supply curve with a positive slop.

As we know, the economy in the long run tends to equilibrium, where the the production level is fixed and equal to the potential of production of the economy. The initial reduction of prices incentives the consumption in the long run, stabilizing with the long run quantites in a minor level of prices.

In the attached image you can observe the process described previously.

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4 years ago

Which employees may be at risk of losing their jobs when the political party in power changes? Check all that apply.

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Elected governance officials and appointed governance officials

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3 years ago

Leon exchanges an office building which he held as investment property for a bowling alley. His office building has a basis of $

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Answer:

According to Section 1031 of Internal Revenue Code, an exchange of like-kind property is referred to as like-kind exchange, if the exchange meets the following criteria:

The property should be exchanged only for the 'like-kind' (same class) property.
The 'like-kind' property that is in exchange should be either used in operations of business or held for investment purposes.
The exchange should be done under specific timing restrictions or requirements (for indirect exchanges through third parties).

Explanation:

A) Explanation: Since both the properties in exchange are real properties which are used in business, this is a like-kind exchange

Description Amount ($)

Fair market value of bowling alley 120,000

Add: Mortgage value L is relieved off 40,000

Amount reali7ed 160,000

Less: Adjusted basis (175:000)

Realized loss by L (15,000) 

C) Explanation: Since the loss realized is due to exchange, the loss is not recognized.

D) Explanation: Since the loss is not recognized, the character of gain or loss could not be

E) Explanation: The total of realized loss, $15,000 (From Requirement (b)) is deferred.

F) Determine the basis of property acquired in exchange, bowling alley.

Description Amount ($)

Fair market value of bowling alley 120,000

Add: Deferred loss 15,000

Basis of bowling alley 135,000

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