Question

The bottom-up approach to calculating OCF starts with Blank______. Multiple choice question. depreciation net income total sales tax liability

Answer 1

The bottom-up approach to calculating OCF starts with net income. Thus the 2nd option is correct.

What is OCF?

The full form OCF is Operating cash flow which refers to the generation of the cash during the normal course of the business. It involves the cash generated by the company through the operating activities.

The operating cash flow is calculated through total revenue or the income of the company minus the operating expenses of the company. In order to calculate the operating cash flow all the operating expenses must be deducted.

Thus the 2nd option is correct.

Learn more about Operating cash here:

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