The Nation's Supply of Productive Resources Increases If

question 205

Multiple Choice

The nation's supply of productive resources increases if

• A)investment is greater than depreciation.
• B)investment equals depreciation.
• C)investment is less than depreciation.
• D)Both answers A and B can be correct.
• E)None of the above answers is correct because the relationship between investment and depreciation has no bearing on the amount of the nation's productive resources.

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Definitions:

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the company's financial performance over a period.

Consolidation Entry TI

A specific type of journal entry made during the consolidation process to integrate the financial activities of a parent company and its subsidiaries.

Consolidation Entry G

An accounting entry used in consolidation to eliminate the effects of intercompany transactions among entities within a consolidated group for external reporting.

Wholly Owned Subsidiary

A company whose entire share capital is held by another company, making it a completely controlled entity of the parent company.