Capital spending is equal to
A)the net purchases and sales of fixed assets.
B)total cash flow to stockholders less interest and dividends paid.
C)net income plus depreciation.
D)the net change in total assets.
E)the change in current assets minus the change in current liabilities.

Question

Quizplus · Accepted Answer

Capital spending refers to the purchase of fixed assets such as property, plant and equipment. It is equal to the net purchases and sales of fixed assets, which means the total amount spent on acquiring new fixed assets less any proceeds from the sale of existing fixed assets.

Capital Spending Is Equal to