Capital spending is equal to:
A)ending net fixed assets minus beginning net fixed assets.
B)ending net fixed assets minus beginning net fixed assets plus depreciation.
C)ending total assets minus beginning total assets.
D)ending total assets minus beginning total assets plus depreciation.
E)beginning total assets plus asset purchases minus asset sales.

Question

Quizplus · Accepted Answer

Capital spending is calculated as the ending net fixed assets minus the beginning net fixed assets plus depreciation. This accounts for the acquisition of new assets, disposal of old assets, and the depreciation expense over the period, giving a comprehensive view of the company's investment in its physical assets.

Capital Spending Is Equal To