Use the Equation Presented Below to Answer the Question That

Use the equation presented below to answer the question that follows: $$\begin{array} { l } \text { Cash } = \mathrm { CL } + \mathrm { LTL } + \mathrm { CS } + \mathrm { RE } - \mathrm { NCCA } - \mathrm { LTA } \\\text { where: } \quad \mathrm { CL } = \text { Current liabilities } \\\text { LTL = Long-term liabilities } \\\text { CS } = \text { Common stock } \\\mathrm { RE } = \text { Retained earnings } \\\text { NCCA } = \text { Noncash current assets } \\\text { LTA } = \text { Long-term assets } \\\end{array}$$ ? 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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