Use the Equation Presented Below to Answer the Question That

question 141

Multiple Choice

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)