Net capital spending is equal to the: Multiple Choice net change in total assets plus depreciation. net change in fixed assets plus depreciation. net income plus depreciation. difference between the market and book values of the total assets. change in total assets.

Respuesta :

Answer: net change in fixed assets plus depreciation.

Explanation:

Capital spending refers to spending on fixed assets.

The net capital spending for the period will therefore be the change in fixed assets. Depreciation will also have to be accounted for because it reduces the value of fixed assets and so need to be added back to the fixed assets to see the actual change in fixed assets.

Net capital spending = Ending fixed assets - Beginning fixed assets + Depreciation