Asked by Terrance Guvakuva on May 21, 2024
Verified
EBITDA represents operating income after income tax, depreciation, and amortization have been deducted.
EBITDA
Term for earnings before interest, taxes, depreciation, and amortization; operating income expressed by adding back depreciation and amortization expense.
Operating Income
The profit realized from a business's operations after deducting operating expenses from gross profit.
Income Tax
A tax levied by governments on individuals or entities based on their income or profits.
- Understand the significance of EBITDA in internal decision-making processes.
Verified Answer
RG
Ruzan GrahamMay 22, 2024
Final Answer :
False
Explanation :
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, meaning it represents operating income before these expenses have been deducted, not after.
Learning Objectives
- Understand the significance of EBITDA in internal decision-making processes.
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