Question

Which of the following statements is​ correct? A. Actual investment will equal planned investment only when inventories rise. B. Actual investment and planned investment are always the same thing. C. Actual investment equals planned investment only when inventories decline. D. Actual investment will equal planned investment only when there is no unplanned change in inventories.

Answer 1

D. Actual investment will equal planned investment only when there is no unplanned change in inventories.

Step-by-step explanation:

Actual investment is the total expenditure that a business spends on investment during a given period of time. It includes planned investment and any unplanned changes in inventory.

Actual investment = Planned investment - Unplanned inventory changes

Therefore when there are no unplanned changes in inventory, then actual investment equals planned investment.