Net Capital Spending Is Equal to ________

question 194

Multiple Choice

Net capital spending is equal to ________.

• A) The change in net working capital.
• B) The change in net fixed assets minus depreciation.
• C) Net income plus depreciation.
• D) Total cash flow to stockholders' less interest and dividends paid.
• E) Operating cash flow minus cash flow from assets minus additions to net working capital.

Recognize the conditions under which special meetings of shareholders can be called.

Comprehend the role of the board of directors in decisions about dividends and the election of directors.

Describe the concept of derivative actions and the scenarios in which they might be appropriate.

Understand shareholder rights, including preemptive and dissenters' rights, under the Model Business Corporation Act.

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Definitions:

Conditional Sales Agreement

A sales contract in which the buyer takes possession of the item immediately but does not gain ownership until the full price is paid.

Equity Of Redemption

The equitable right of a mortgagor to acquire the title to the mortgaged property by payment of the debt secured by the mortgage.

Arrears

A state of being behind in fulfilling obligations, such as payments on a loan, rent, or utilities.

Purchaser

An individual or entity that buys goods or services from a seller.