Which of the Following Statements About Depreciation Is Correct

question 101

Multiple Choice

Which of the following statements about depreciation is correct?

• A)Depreciation includes net additions to the economy's total stock of capital.
• B)The total amount of capital goods in a country is called depreciation.
• C)Net investment is equal to gross investment minus depreciation.
• D)Net investment is equal to gross investment plus depreciation.
• E)Depreciation is equal to net investment.

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Definitions:

E = I x R

Ohm's law, stating that the electric current (I) through a conductor between two points is directly proportional to the potential difference (V) across the two points.

Series Circuit

An electrical circuit in which all of the parts of the circuit occur in a single path.

Current Flow

The flow of carriers like electrons that carry electric charge through a conductor or an electric circuit.

Series Circuits

Electrical circuits in which components are connected end-to-end so that current flows through each component in turn without branching.