What does capital formation occur by? (Select all that apply) saving, producing, investing, selling

1 answer:

4 0

Basically, the amount of capital that an entity have could be calculated with : Assets + Total Liability. So the answers would be:

Saving --> will increase assets from the interest
Producing--> your inventory is considered as an assets
Investing--> Directly increase your capital
Selling--> Bringing cash into company, which also considered as assets

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