Net capital spending is equal to:
A) net additions to Net Working Capital.
B) the net change in fixed assets.
C) net income plus depreciation.
D) total cash flow to shareholders less interest and dividends paid.

Question

Quizplus · Accepted Answer

Net capital spending refers to the net change in fixed assets, which includes purchases of new assets and sales of existing ones, adjusted for depreciation. It does not directly relate to net working capital, net income, or cash flows to shareholders in the context of its definition.

Net Capital Spending Is Equal To