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Use the Equation Presented Below to Answer the Question That

Question 77

Multiple Choice

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

where:  CL = Current li abilities  LTL = Long-term liabilities  CS = Common stock  RE = Retained earnings  NCCA = Noncash current assets  LTA = Long-term assets \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 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:

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