Question

The drawback of using the top-down approach to compute the operating cash flow is that it Multiple Choice O ignores noncash expenses applies only if a project affects soles apoles only to cost cutting projects Prex 23 30 ili Next >

Answer 1

The correct option is 'ignores noncash expenses'. Top-down approach does not consider the noncash expenses while computing operating cash flow. It ignores all the noncash items, thus might represent an incorrect figure for operating cash flows.