Gross Investment Is

question 144

Multiple Choice

Gross investment is

• A) what is left over from total new private investment after depreciation.
• B) the total amount of private investment purchases, whether new or previously existing.
• C) the total amount of new private investment purchases.
• D) the wear and tear on private investment.

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Definitions:

Cash Payments

Outflows of cash made by a business, including expenses, creditor payments, and other liabilities, during a specific period.

Statement of Cash Flows

It's a financial document summarizing the total cash entering a company from operational earnings and investment revenues, as well as the cash spent on business-related activities and investment outlays during a specific period.

Operating Activities

Business activities related to the day-to-day operations that generate revenue, such as sales and purchasing of inventory.

Indirect Method

In accounting, a method used to calculate cash flows from operating activities by starting with net income and adjusting for non-cash transactions.