From an Economist's Perspective, Which Is Not Considered to Be

question 171

Multiple Choice

From an economist's perspective, which is not considered to be an investment?

• A)construction of a new factory
• B)purchase of shares of company stock
• C)the building of an apartment complex
• D)additions to inventories at steel plants

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Definitions:

Bonus

When a new partner is admitted, he or she may pay more or less than equity interest. If the new partner pays more, the old partners share a bonus in the profit and loss ratio. Of course, the opposite could result, and the new partner could receive a bonus if he or she invests less than equity interest.

Fair Market Value

The value at which an asset would be sold in a competitive bidding environment.

Capital Account

A financial statement that shows the changes in ownership interest of a country or an organization.

Accounting Records

Accounting Records are documents and ledgers that capture all financial transactions of an entity, serving as a basis for financial statements and audit.