Definition for : Investment

Investment is an outlay expected to increase operating cash flows in the Future. Investments are carried out from a long-term perspective and have a longer life than that of the operating cycle. Unlike Charges, investments are not destroyed in the operating cycle. Investment represents abstinence with a view of increasing Future receipts. The increase must be sufficient to ensure the forecasted Return on investment. Investment is a fundamental process in the life of a company, engaging it for a long period.
To know more about it, look at what we have already written on this subject