Which of the following phrases accurately defines depreciation in any one year?
A) Capital stock at the end of the year minus capital stock at the beginning of the year
B) Capital stock at the beginning of the year minus gross investment for the year
C) Gross investment minus net investment
D) Capital stock at the beginning of the year minus capital stock at the end of the year plus gross investment
E) None of the above

Question

Quizplus · Accepted Answer

Depreciation in any one year is the difference between gross investment (total amount spent on new capital) and net investment (increase in the capital stock), which accurately reflects the amount of capital consumed or the reduction in the value of capital over that period.

Which of the Following Phrases Accurately Defines Depreciation in Any