Question

define:
asset
liability
physical capital formation
human capital formation
investment
expenditure

Answer 1

Asset - An asset is any valuable thing or commodity which an individual owns. It includes- Land, vehicle, etc.
Liability- Liability is the due amount which an individual has to pay to someone. It includes loans payments, accounts payable, etc.
Physical capital formation- It is one of the three factors of production which are used as inputs. Its includes land, capital etc.
Human capital formation- It is the process of transforming people into labourers who are capable of goods and services.
Investment- It is a process of investing money in any asset in the hope of receiving profits in the future.
Expenditure- It is the amount of funds have been spent to meet day to day needs.