Metz Vets
The company's accountant prepared this reminder for his intern:
Cash = CL + LTL + CS + RE - NCCA - LTA
where:
CL = Current labilites
LTL = Long-tern liabilities
CS =Comman shares
RE = Retained earnings
NCCA = Nancash current assets
LTA = Long-term assets
-Refer to the figure Metz Vets.Which of the following activities results in a cash inflow?

Question

Metz Vets
The company's accountant prepared this reminder for his intern:
Cash = CL + LTL + CS + RE - NCCA - LTA
 where:
CL = Current labilites
LTL = Long-tern liabilities
CS =Comman shares
RE = Retained earnings
NCCA = Nancash current assets
LTA = Long-term assets
-Refer to the figure Metz Vets.Which of the following activities results in a cash inflow?

Quizplus · Accepted Answer

Increases in common shares (CS) result in a cash inflow because when a company issues more of its common stock, it receives cash from investors in exchange for the shares. This is a direct way for a company to raise capital.

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