The Top-Down Approach to Computing the Operating Cash flOw

question 272

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.

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Definitions:

Objective

Based on fact, measurable and observable, devoid of personal feelings or biases.

Required Course

A course that students must take and pass as part of the curriculum of a particular education program.

Avoidance-Avoidance Conflict

A psychological dilemma involving the need to choose between two undesirable options.

Approach-Avoidance Conflict

A psychological conflict that occurs when a single option has both attractive and unattractive aspects, making the decision-making process difficult.