NCS = End NFA - Bgn NFA + ______ represents the net capital spending. What fills in the blank?
Understand the Problem
The question is asking about the formula for Net Capital Spending (NCS). We need to identify the missing component in the formula: NCS = End NFA - Bgn NFA + ______ . NFA stands for Net Fixed Assets. The formula is a principle of accounting.
Answer
Depreciation
The blank should be filled with "Depreciation". The formula for net capital spending (NCS) is: NCS = End NFA - Bgn NFA + Depreciation.
Answer for screen readers
The blank should be filled with "Depreciation". The formula for net capital spending (NCS) is: NCS = End NFA - Bgn NFA + Depreciation.
More Information
Net capital spending reflects the investments a company is making in its fixed assets, taking into account both new capital expenditures and the reduction in value of existing assets through depreciation.
Tips
A common mistake is to confuse net capital spending with capital expenditure (CapEx). CapEx represents the total investment in fixed assets, while net capital spending considers both CapEx and depreciation.
Sources
AI-generated content may contain errors. Please verify critical information
