Net capital spending:
A) Is negative if the sale of fixed assets is greater than the acquisition of current assets.
B) Is equal to zero if the decrease in the fixed assets account is equal to the depreciation expense for the period.
C) Reflects the net changes in total assets over a stated period of time.
D) Is equivalent to the cash flow from assets.
E) Is equal to the ending net fixed assets minus the beginning net fixed assets.

Question

Quizplus · Accepted Answer

Net capital spending is zero if the decrease in fixed assets equals the depreciation expense, as this indicates no net investment in fixed assets.

Net Capital Spending