Net Capital Spending Is Equal To

question 40

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 stockholders less interest and dividends paid.
• E) the change in total assets.

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Definitions:

Fair Market Value

The price at which a property would sell under normal conditions in an open and competitive market.

Book Value

The net value of a company's assets as recorded on the balance sheet, calculated by subtracting liabilities from total assets.

Historical Cost

The actual cost of an asset at time of purchase.

Legal Liability

Obligations under the law arising from civil actions or claims against an entity or individual, encompassing contractual obligations and tort claims.