Capital stock increases with investment and decreases with depreciation.

Name: Capital stock increases with investment and decreases with depreciation.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

Capital stock represents the total amount of physical capital (machinery, equipment, buildings, etc.) that a company or economy possesses. It increases when new investments are made in the form of purchasing new assets, and it decreases when existing assets are depreciated or disposed of.

Capital Stock Increases with Investment and Decreases with Depreciation