What is meant by capital formations?

  1. saif113sb profile image78
    saif113sbposted 5 years ago

    What is meant by capital formations?

  2. profile image0
    JThomp42posted 5 years ago

    It is a term used to describe net capital accumulation during an accounting period. Capital formation refers to net additions of capital stock such as equipment, buildings and other intermediate goods. A nation uses capital stock in combination with labour to provide services and produce goods; an increase in this capital stock is known as capital formation.

  3. ezeconomics profile image69
    ezeconomicsposted 5 years ago

    The Term Capital Formation refers to the "net addition to the stock of capital". Some time Capital formation is used as synonymous to the term 'Investment'