The Top-Down Approach to Computing the Operating Cash Flow

question 19

Multiple Choice

The top-down approach to computing the operating cash flow:

• A) Ignores all noncash items.
• B) Applies only if a project produces sales.
• C) Can only be used if the entire cash flows of a firm are included.
• D) Is equal to sales - costs - taxes + depreciation.
• E) Includes the interest expense related to a project.

---

Definitions:

Using Hypnosis

The practice of inducing a trance-like state to increase suggestibility and facilitate therapeutic interventions.

Eugenics Sterilization

The controversial practice of selectively sterilizing individuals deemed undesirable for reproduction, historically associated with the eugenics movement.

Somatogenic Perspective

The view that mental disorders originate from biological or physiological causes, emphasizing medical treatment.

Abnormality

A deviation from the norm or standard, especially in behavior, structure, or function, which may suggest a pathology or disorder.