Net 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 change in total assets.
E)the change in current assets minus the change in current liabilities.

Question

Quizplus · Accepted Answer

Net capital spending refers to the net purchases and sales of fixed assets, which are the long-term assets that a company acquires and uses in its operations. This includes investments such as property, plant, and equipment, as well as intangible assets like patents and copyrights. Therefore, the correct answer is A).

Net Capital Spending Is Equal To