Net capital spending is equal to:
A)net additions to net working capital.
B)the net change in non-current assets.
C)net income plus depreciation.
D)total cash flow to shareholders less interest and dividends paid.
E)the change in total assets.

Question

Quizplus · Accepted Answer

Net capital spending is the net change in non-current assets, which includes additions and disposals of property, plant, and equipment, and other long-term assets. It represents the amount of cash the company has invested in these assets during the period.

(Note: choices A, C, D, and E are not correct because they do not accurately represent net capital spending.)

Net Capital Spending Is Equal To