Economists Also Refer to the Normal Rate of Return on Investment

question 247

Multiple Choice

Economists also refer to the normal rate of return on investment as

• A) a residual cost.
• B) the opportunity cost of capital.
• C) the equity kicker.
• D) the fixed cost of entrepreneurship.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was acquired, representing the wear and tear on the asset over time.

Statement of Cash Flows

A document that provides insight into how alterations in balance sheet items and earnings affect cash and cash-like assets, dissecting the analysis into operating, investing, and financing divisions.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was acquired and put into use.

Statement of Cash Flows

An accounting document that illustrates adjustments in balance sheet figures and their effect on cash and similar resources, dividing the analysis among operating, investing, and financing sectors.