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

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)