Net Capital Spending

question 55

Multiple Choice

Net capital spending:

• A) is equal to ending net fixed assets minus beginning net fixed assets.
• B) is equal to zero if the decrease in the net fixed assets is equal to the depreciation expense.
• C) reflects the net changes in total assets over a stated period of time.
• D) is equivalent to the cash flow from assets minus the operating cash flow minus the change in net working capital.
• E) is equal to the net change in the current accounts.

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Definitions:

Organizational Values

The core principles and beliefs that guide the behaviors and decisions of an organization and its employees.

Subunits

Secondary or smaller divisions within a larger organization or structure.

Network Structures

Organizational designs that emphasize and rely on interconnected, flexible arrangements of individuals, groups, or organizations to complete tasks or projects.

Functional Structures

An organizational framework where the company is divided into departments based on their function, such as marketing, finance, and production.