_____ refers to the changes in net capital assets.
A)Cash flow from assets
B)Net working capital
C)Cash flow from investing
D)Operating cash flow
E)Cash flow to creditors

Question

Quizplus · Accepted Answer

Cash flow from investing refers to the changes in net capital assets, such as purchase or sale of property, plant, or equipment. Cash flow from assets (A) is the sum of operating cash flow and cash flow from investing. Net working capital (B) refers to the difference between current assets and current liabilities. Operating cash flow (D) is the cash generated from the company's operations. Cash flow to creditors (E) refers to the cash paid to creditors for interest expense and principal repayment on debt. None of these options completely match the definition of changes in net capital assets.

_____ Refers to the Changes in Net Capital Assets