Only Net investment, not gross investment …
CBSE, JEE, NEET, CUET
Question Bank, Mock Tests, Exam Papers
NCERT Solutions, Sample Papers, Notes, Videos
Posted by Jatin Sah 4 years, 8 months ago
- 1 answers
Related Questions
Posted by Priyansu Samal 1 year, 2 months ago
- 0 answers
Posted by Akshat Bhoi 1 year, 2 months ago
- 0 answers
Posted by Pinky Ls 1 year, 2 months ago
- 1 answers
Posted by Raman_Harika Harika 1 year, 2 months ago
- 0 answers
Posted by Md Samim 1 year, 2 months ago
- 0 answers
Posted by Ashra Khanam 1 year, 3 months ago
- 0 answers
Posted by Carry Lyn 1 year, 3 months ago
- 1 answers
Posted by Angel Pv 1 year, 2 months ago
- 2 answers
Posted by Shri . 1 year, 2 months ago
- 1 answers
myCBSEguide
Trusted by 1 Crore+ Students
Test Generator
Create papers online. It's FREE.
CUET Mock Tests
75,000+ questions to practice only on myCBSEguide app
Meghna Thapar 4 years, 8 months ago
The total addition made to the capital stock of economy in a given period is termed as Gross Investment. Capital stock consists of fixed assets and unsold stock. So, gross investment is the expenditure on purchase of fixed assets and unsold stock during the accounting year.
However, gross investment does not indicate the actual change in economy’s stock of productive assets for a given year. During the production process, some amount of fixed capital is used up. This loss of fixed capital is known as depreciation. By subtracting depreciation from gross investment, we get Net Investment.
Net Investment:
The actual addition made to the capital stock of economy in a given period is termed as Net Investment.
Net Investment = Gross Investment – Depreciation
0Thank You