English

Gross investment = -

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Question

Gross investment =

Options

  • Net investment + Depreciation

  • Net investment − Depreciation.

  • Gross investment = expenditure on the purchase of fixed assets during the accounting year + expenditure on the inventory stock during the accounting year

  • Both Net investment + Depreciation and Gross investment = expenditure on the purchase of fixed assets during the accounting year + expenditure on the inventory stock during the accounting year

MCQ

Solution

Net investment − Depreciation.

Explanation:

Gross investment is the amount spent during the year on the purchase of fixed assets or inventory stock.

Gross investment = expenditure on the purchase of fixed assets during the accounting year + expenditure on the inventory stock during the accounting year

or

Gross investment = Net investment + Depreciation.

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