Net Capital Spending Is Equal To

question 15

Multiple Choice

Net capital spending is equal to:

• A) net additions to Net Working Capital.
• B) the net change in fixed assets.
• C) net income plus depreciation.
• D) total cash flow to shareholders less interest and dividends paid.

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Definitions:

Selling Price

The amount of money for which something is sold in the market.

Book Value

The net value of a company's assets minus its liabilities, often compared to the market value to assess if a stock is under or overvalued.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health and ability to meet short-term obligations.

Accounts Payable

Short-term liabilities or debts a company owes to its creditors for goods and services purchased on credit.