Cash outflows result from increases in asset accounts and decreases in liability and equity accounts.

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Cash outflows occur when a company's asset accounts increase because it means the company is spending cash to acquire more assets. Similarly, when liability or equity accounts decrease, it indicates that cash is being used to reduce these accounts, such as paying off debt or distributing dividends, leading to a cash outflow.

Cash Outflows Result from Increases in Asset Accounts and Decreases