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 net change in total assets.
E)the change in current assets minus the change in current liabilities.

Question

Quizplus · Accepted Answer

Capital spending refers to the amount of money a company spends on acquiring or upgrading fixed assets. This includes purchases of property, buildings, equipment, and other long-term assets. Therefore, capital spending is equal to the net purchases and sales of fixed assets.

Capital Spending Is Equal to