When Net Capital Spending Is a Negative Value, the Firm

question 175

Multiple Choice

When net capital spending is a negative value, the firm has:

• A) Depreciation expense which exceeds the cost of new assets acquired.
• B) Acquired more fixed assets than it has current assets.
• C) Sold more fixed assets than it acquired during a stated period of time.
• D) Reduced its total assets during the course of the year.
• E) Reduced its investment in inventory.