Net capital spending:

Multiple Choice

is equal to ending net fixed assets minus beginning net fixed assets.

is equal to zero if the decrease in the net fixed assets is equal to the depreciation expense.

reflects the net changes in total assets over a stated period of time.

is equivalent to the cash flow from assets minus the operating cash flow minus the change in net working capital.

is equal to the net change in the current accounts.Which one of the following actions will decrease the value of a firm's net working capital?

Multiple Choice

Donating inventory to charity

Depreciating an asset

Collecting an account receivable

Purchasing inventory on credit

Using cash to pay a supplier