Which statement is correct? Answer to: What happens if depreciation exceeds gross investment? © copyright 2003-2020 Study.com. Gross investment is the amount a company has invested in an asset or business without factoring in depreciation. All rights reserved. C. the economy's stock of capital is growing. If gross investment is consistently lower than depreciation, net investment will be negative, indicating that productive capacity is decreasing. answer! Answer Save. 1 Answer. 25. what will net investment be? B)Gross investment is negative. Purchased repair equipment from Andrew Company,... Poisson Distribution: Definition, Formula & Examples, Straight-Line Depreciation: Method, Formula & Example, Crisis Planning & Management in Business: Definition & Elements, Internet Marketing Challenges & Opportunities, Capacity & Facilities Planning: Definition & Objectives, What Is a 360 Degree Appraisal? a. b) the economy is importing more than it exports. O Net investment exceeds depreciation. - Definition & Examples, Variable Cost: Definition, Formula & Examples, Accrued Expenses & Revenues: Definition & Examples, Introduction to Management: Help and Review, Focus on Personal Finance: Online Textbook Help, TECEP Security Analysis & Portfolio Management: Study Guide & Test Prep, Ohio Assessments for Educators - Business Education (008): Practice & Study Guide, Introduction to Financial Accounting: Certificate Program, Accounting 201: Intermediate Accounting I, Introduction to Business: Homework Help Resource, Financial Accounting: Homework Help Resource, Biological and Biomedical O The nation's capital stock is being depleted. D. net investment is zero. Terms O Gross investment is negative. 1 Answer. Relevance. | Factoring in depreciation creates net investment. Sciences, Culinary Arts and Personal Sciences, Culinary Arts and Personal If depreciation exceeds gross investment, A)Net investment exceeds depreciation. Privacy Login to reply the answers Post; Still have questions? The formula for computing annual straight line... What is the double declining balance method? Lv 4. If a company truck is expected to be used for 5 years, the company would divide its total cost, minus its sale value at the end of its useful life, over five years; and they would expense the yearly value on their financial statements. If depreciation exceeds gross investment, net investment will be?? Services, Gross Private Domestic Investment: Definition & Formula, Working Scholars® Bringing Tuition-Free College to the Community. O Gross investment is negative. © 2003-2020 Chegg Inc. All rights reserved. Earn Transferable Credit & Get your Degree, Get access to this video and our entire Q&A library. All rights reserved. D)The nation's capital stock is being depleted. If depreciation exceeds gross investment, O The difference between GDP and NDP is smaller than gross investment. Favorite Answer. Get your answers by asking now. Services, Depreciation: Definition, Formula & Examples, Working Scholars® Bringing Tuition-Free College to the Community. Become a Study.com member to unlock this Zero. Ask Question + 100. For example, a company buys a car for $5,000 that has depreciated by $3,000 after three years. 7 years ago. 7 years ago. If depreciation exceeds gross investment, net investment is negative True or false: 1) Net investment equals gross investment minus depreciation. In year three, the gross investment … - Definition, Purpose, Process & Examples, Statement of Retained Earnings: Definition, Formula & Example, Calculate Ending Inventory: Formula & Explanation, What Is a General Ledger? Bill. If depreciation exceeds gross investment, O The difference between GDP and NDP is smaller than gross investment. All other trademarks and copyrights are the property of their respective owners. & © copyright 2003-2020 Study.com. 2) If depreciation exceeds gross investment, net investment is negative. what will net investment be? B. the economy's stock of capital is shrinking. If depreciation (consumption of fixed capital) exceeds gross investment, it can be concluded that: a) nominal GDP is rising, but real GDP is declining. If depreciation exceeds gross investment: A. the economy's stock of capital may be either growing or shrinking. anonymous. Become a Study.com member to unlock this Lv 7. Gross investment is defined as the total amount spent on goods (i.e., the capital goods) to produce other goods and services (i.e., consumption goods and services), whereas net investment is the increase in productive capital stock. All other trademarks and copyrights are the property of their respective owners. If depreciation exceeds gross investment, net investment will be??? View desktop site. That can be a problem down the road. Earn Transferable Credit & Get your Degree, Get access to this video and our entire Q&A library. Our experts can answer your tough homework and study questions. O The nation's capital stock is being depleted. Create your account. Create your account. - Definition, Effects & Example, Retail Channels: Definition, Types & Examples, Type I & Type II Errors in Hypothesis Testing: Differences & Examples, What is Bank Reconciliation? Answer Save. answer! 3) The expenditure approach to measuring GDP includes firmsʹ spending on … Depreciation is calculated by dividing the total value of an asset over the expected useful life of the asset. C)The difference between GDP and NDP is smaller than gross investment. Use the following data to answer the question. If depreciation (consumption of fixed capital) exceeds gross investment, it can be concluded that: a) nominal GDP is rising, but real GDP is declining. The depreciation took away the net value of the investment. Relevance. Therefore, the only way that an asset would continue to depreciate after the period allotted would be if the... Our experts can answer your tough homework and study questions. Positive. Answer true or false: When U.S. national savings... 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Depreciation cannot be a negative number. What happens if depreciation exceeds gross investment? O Net investment exceeds depreciation. 0 0 0. Refer to the table below to answer the questions. - Definition & Examples, What is Fiscal Policy? The value of an industrial machine went down 25%... Why does the retained earnings in a tax return... Amber Co. purchases computer equipment for $82,000... What is the straight line depreciation method? The table below shows the values for several... What is a gross private domestic investment?
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