The Bottom-Up Approach to Computing the Operating Cash flOw Applies

question 49

Multiple Choice

The bottom-up approach to computing the operating cash flow applies only when:

• A)both the depreciation expense and the interest expense are equal to zero.
• B)the interest expense is equal to zero.
• C)the project is a cost-cutting project.
• D)no non-current assets are required for the project.
• E)taxes are ignored and the interest expense is equal to zero.

---

Definitions:

Lysosomes

Organelles in cells that contain enzymes to break down waste materials and cellular debris.

Peroxisomes

Organelles found in virtually all eukaryotic cells that contain enzymes involved in the detoxification of harmful substances and in metabolic pathways.

Vesicles

Small structures within cells that contain fluid or cytoplasm and are used for storing or transporting substances.

Enzymes

Proteins that catalyze and speed up chemical reactions in the body without being consumed or altered in the process.