If the Economy's Capital Stock Increases Over Time

question 111

Multiple Choice

If the economy's capital stock increases over time

• A) net investment is positive.
• B) depreciation is less than zero.
• C) depreciation exceeds gross investment.
• D) gross investment equals depreciation.

---

Definitions:

Supplies

Consumable items used in day-to-day operations of a business or office, such as stationery, paper, and cleaning products.

Expenses

Outflows or other uses of assets or incurrence of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major operations.

Assets

Resources owned or controlled by a business, considered to have economic value and expected to benefit future operations.

Prepaid Rent Expense

Prepaid rent expense is an advance payment for rent that is recorded as an asset on the balance sheet until it is used or consumed in future periods.