Which one of the following statements is correct?
I. Shareholders' equity represents the residual value of a firm.
II. The cash flow related to interest payments less any net new borrowing is called the operating cash flow.
III. Net capital spending is equal to ending net fixed assets minus beginning net fixed assets.
IV. The book value of a firm is adjusted to the market value whenever the market value exceeds the stated book value.
II only
I, II, III, and IV
I and III only
I, II, and IV only
I only