Which of the following is the major limitation of using EBITDA for analyzing foreign financial statements?
A)It is nearly impossible for most financial analysts to calculate this number.
B)Few analysts understand what this earnings number represents.
C)The excluded items may be important factors for evaluation.
D)It cannot be converted from a foreign currency to a domestic currency.

Question

Quizplus · Accepted Answer

The major limitation of using EBITDA for analyzing foreign financial statements is that the excluded items may be important factors for evaluation. In different countries, there may be different norms for accounting and reporting, and certain items may be excluded from or included in the calculation of EBITDA. Therefore, it may not give an accurate picture of the company's financial performance.

Which of the Following Is the Major Limitation of Using