Question : Which of the following are true? Gross investment can be equal to net investment. In final goods, no value is to be added. Option 1: Both are true. Option 2: Both are false. Option 3: Statement 1 is true and statement 2 is false. Option 4: Statement 1 is fal ...

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Question : Which of the following are true?

Gross investment can be equal to net investment.

In final goods, no value is to be added.

Option 1: Both are true.

Option 2: Both are false.

Option 3: Statement 1 is true and statement 2 is false.

Option 4: Statement 1 is false and statement 2 is true

Team Careers360 7th Jan, 2024

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Answer (1)

Team Careers360 14th Jan, 2024

Correct Answer: Statement 1 is false and statement 2 is true

Solution : The only difference between gross and net investment is the depreciation of capital assets that happens over a period of time. Gross investment consists of depreciation whereas net investment does not include depreciation. Hence, if depreciation is deducted from gross investment it can be equal to net investment.
Hence, Option D is correct.

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