Use the equation presented below to answer the question that follows:
Cash = CL + LTL + CS + RE - NCCA - LTA
Where: CL = Current liabilities
LTL = Long-term liabilities
CS = Common stock
RE = Retained earnings
NCCA = Noncash current assets
LTA = Long-term assets
Which of the following activities results in a cash outflow?
A) Decreases in noncash current assets NCCA)
B) Decreases in long-term assets LTA)
C) Increases in long-term liabilities LTL)
D) Decreases in retained earnings RE)
Correct Answer:
Verified
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