Which of the following equations represent the relationship between the change in Cash and cash equivalents (Cash) and the changes in Other Current Assets (OCA), Current Liabilities (CL), Noncurrent Assets (NCA), Noncurrent Liabilities (NCL), Capital Stock (CS) and Retained Earnings (RE)?
A) ΔCash = ΔCL + ΔNCL − ΔOCA −ΔNCA + ΔCS + ΔRE
B) ΔCash = ΔOCA + ΔNCA −ΔCL −ΔNCL + ΔCS + ΔRE
C) ΔCash = ΔCL + ΔNCL − ΔOCA −ΔNCA - ΔCS - ΔRE
D) ΔCash = ΔOCA + ΔNCA −ΔCL −ΔNCL - ΔCS - ΔRE

Question

Quizplus · Accepted Answer

The correct equation reflects the cash flow statement where increases in liabilities and equity (CL, NCL, CS, RE) increase cash, while increases in assets (OCA, NCA) decrease cash.

Which of the Following Equations Represent the Relationship Between the Change