Net investment in capital assets would not include

Question

Quizplus · Accepted Answer

Net investment in capital assets refers to the amount spent on acquiring or improving capital assets, which is represented by the difference between the total cost of capital assets and accumulated depreciation. Inventory is not a capital asset and is therefore not included in net investment in capital assets. Accounts payable and notes payable that are capital related are included in net investment in capital assets, as they represent amounts owed for the acquisition of capital assets. Accumulated depreciation is also included because it represents the amount of the asset's cost that has been allocated to depreciation over time.

Net Investment in Capital Assets Would Not Include