Use the equation presented below to answer the question that follows: Cash = CL + LTL + CS + RE - NCCA - LTA

where:$\begin{array}{l}
\text { CL = Current li abilities } \
\text { LTL = Long-term liabilities } \
\text { CS = Common stock } \
\text { RE = Retained earnings } \
\text { NCCA = Noncash current assets } \
\text { LTA = Long-term assets }
\end{array}$
- Which of the following activities results in a cash inflow?
A)Increases in noncash current assets (NCCA)
B)Decreases in current liabilities (CL)
C)Increases in common stock (CS)
D)Decreases in retained earnings (RE)

Question

Use the equation presented below to answer the question that follows: Cash = CL + LTL + CS + RE - NCCA - LTA
 
where:$\begin{array}{l}
\text { CL = Current li abilities } \
\text { LTL = Long-term liabilities } \
\text { CS = Common stock } \
\text { RE = Retained earnings } \
\text { NCCA = Noncash current assets } \
\text { LTA = Long-term assets }
\end{array}$
- Which of the following activities results in a cash inflow?
A)Increases in noncash current assets (NCCA)
B)Decreases in current liabilities (CL)
C)Increases in common stock (CS)
D)Decreases in retained earnings (RE)

Quizplus · Accepted Answer

Increases in common stock (CS) result in a cash inflow because it typically means the company is issuing more shares, which brings cash into the company.

Use the Equation Presented Below to Answer the Question That