Which of the following describes the "top-down" approach to deﬁning operating cash ﬂow?

Question

Quizplus · Accepted Answer

The "top-down" approach to defining operating cash flow begins with revenue (S), subtracts expenses (C), and then subtracts taxes (T). This yields the operating cash flow before accounting for any non-cash adjustments, such as depreciation (D). The formula for this approach is S - C - T + D. So, the correct choice is D.

Which of the Following Describes the "Top-Down" Approach to Deﬁning