Disinvestment Occurs When

question 127

Multiple Choice

Disinvestment occurs when:

• A) Businesses sell machinery and equipment to one another
• B) The prices of investment goods rise faster than the prices of consumer goods
• C) Businesses have larger inventories at the end of the year than they had at the start
• D) The consumption of private fixed capital exceeds gross private domestic investment

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Definitions:

Assets

Resources owned by a company or individual that have economic value and can provide future benefits.

Debits

Accounting entries that increase assets or expenses and decrease liabilities, equity, or revenue.

Credits

Entries that increase liabilities, revenues, or equity, or decrease assets or expenses in accounting.

Transferring

The process of moving items, such as data, assets, or inventory, from one location or account to another.