Which of the Following Statements Regarding Human Capital Is INCORRECT

question 96

Multiple Choice

Which of the following statements regarding human capital is INCORRECT?

• A)Human capital is the accumulated skill and knowledge of human beings.
• B)Education is the only vehicle for the creation of human capital because training simply reinforces what has already been learned.
• C)The accumulation of human capital is the source of both increased labour productivity and technological advance.
• D)Writing and mathematics, the most basic of human skills, are crucial elements in economic progress.
• E)Human capital is the fundamental source of labour productivity growth.

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Definitions:

Capitalize

To record an expenditure as an asset on the balance sheet rather than expensing it, in order to spread the cost over its useful life.

CICA Handbook

The comprehensive guide published by the Canadian Institute of Chartered Accountants containing accounting and auditing standards in Canada.

Equity Method

An accounting technique used for investments in which the investor has significant influence over the investee but does not exert full control, reflecting the investor's share of the investee's profits and losses.

Cost Method

An accounting method used to value certain investments based on their original purchase cost, without reflecting market value changes until realized.