Metz Vets The Company’s Accountant Prepared This Reminder for His Intern

question 185

Multiple Choice

Metz Vets

The company’s accountant prepared this reminder for his intern:

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

-Refer to Metz Vets. 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)

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Definitions:

Nationalizing

The process by which a government takes control of a privately owned company or industry, often to assert greater control over the economy.

Product-Safety Liability

Refers to the legal obligation of manufacturers, distributors, and retailers to produce and sell products that are safe and free from defects that could harm consumers.

Taurine

A sulfur-containing amino acid that is found naturally in the body and is important in the metabolism and function of the heart muscle, retina, and brain.

ProActive

The approach of taking initiative and action in anticipation of future problems, needs, or changes rather than simply reacting to them as they arise.