Net Capital Spending Is Equal To

question 1

Multiple Choice

Net capital spending is equal to:

• A)the net purchases and sales of fixed assets.
• B)total cash flow to stockholders less interest and dividends paid.
• C)net income plus depreciation.
• D)the change in total assets.
• E)the change in current assets minus the change in current liabilities.

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Definitions:

Net Profits

The sum left over once all costs, taxes, and expenses have been deducted from the total income.

Partnership Status

The legal standing of a business entity comprising two or more individuals who share management and profits.

Compensation

Payment or benefits awarded to individuals for their services, labor, or for losses suffered.