Which of the Following Statements Is Correct

question 97

Multiple Choice

Which of the following statements is correct?

• A)Net investment plus corporate profits equals gross investment.
• B)Gross investment minus financial capital equals net investment.
• C)Net investment is greater than gross investment.
• D)Net investment minus depreciation equals gross investment.
• E)Net investment plus depreciation equals gross investment.

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Definitions:

Operating Cash Flow

The cash flow stemming from a company's usual business processes.

Marginal Tax Rate

The proportion of your earnings that is taxed according to the tax bracket(s) for which you are eligible.

Straight-Line Depreciation

A method of calculating the depreciation of an asset that allocates an equal amount of depreciation each year over the asset's useful life.