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)

Prepare and interpret a consolidated statement of financial position.

Recognize the implications of acquiring net assets versus shares in a business combination.

Understand the reporting requirements for consolidated financial statements.

Determine the fair value of identifiable intangible assets in a business combination.

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Definitions:

Vicariously Liable

Vicariously liable means being held legally responsible for the actions of another person, such as an employer being liable for acts of their employees.

Inherently Dangerous

Activities or objects that carry a risk of harm or damage as a natural part of their existence or function.

Misrepresentation Liability

Legal accountability that arises when one party provides false information during a contract or negotiation, leading to harm or loss to another.

Vicarious Liability

A legal principle that holds an individual or entity responsible for the actions of another person, usually within the context of an employment relationship.