Answered: Depreciation equals ________. a.…

Depreciation equals ________. a. capital minus gross investment b. capital minus net investment c. net investment minus gross investment d. gross investment minus net investment

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 3.7P

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Question

Depreciation equals ________.

a. capital minus gross investment

b. capital minus net investment

c. net investment minus gross investment

d. gross investment minus net investment

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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The decrease in value of capital asset over time period is know as the depreciation.

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