Depreciation Is

question 5

Multiple Choice

Depreciation is:

• A) the amount of decline in business inventories.
• B) the additional capital stock in a year.
• C) the wear and tear of capital as it is used in production.
• D) the decrease in the overall price level.

---

Definitions:

Biases

Systematic patterns of deviation from norm or rationality in judgment, where particular feelings, beliefs, or behaviors predominate over others.

Equity Investments

Financial investments in stocks that represent ownership in a company or corporation.

Stock Market

A marketplace where stocks, bonds, and other securities are bought and sold, facilitating capital raising for companies and investment opportunities for individuals.

Expected Return

Return that an asset should earn on average.