Which of the Following Statements Is Always True

question 73

Multiple Choice

Which of the following statements is always true?

• A)Investment equals depreciation.
• B)Investment equals the capital stock minus depreciation.
• C)The capital stock is equal to investment minus depreciation.
• D)Any change in the capital stock is equal to investment minus depreciation.
• E) The increase in investment is equal to the capital stock minus depreciation.

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Definitions:

Cash Receipts

The total amount of money, including cash, checks, and electronic transfers, received by a business during a given period.

Accounting Records

Documentation and books that maintain a systematic record of financial transactions and positions of a business.

Invoice Price

The amount charged by a seller for goods or services, exclusive of any discounts or allowances.

Journal Entries

The written records of financial transactions in the accounting system, indicating the accounts and amounts debited and credited.