The Total Amount Spent to Buy New Physical Capital and Replace

question 162

Multiple Choice

The total amount spent to buy new physical capital and replace old capital is referred to as

• A) depreciation.
• B) net investment.
• C) savings.
• D) gross investment.
• E) wealth.

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Definitions:

General Ledger

The master set of accounts that summarizes all transactions occurring within an entity, serving as the main accounting record.

Journal Entry

A record in accounting that notes the details of a financial transaction as it happens.

Stockholders' Equity

Represents the residual interest in the assets of a corporation after deducting liabilities. It typically includes common stock, preferred stock, retained earnings, and treasury stock.

Balance Sheet

A report detailing a corporation's assets, liabilities, and equity of its shareholders at a certain moment.