True, False, or Uncertain: "Adding depreciation, depletion, and amortization back to
operating profit gives us EBITDA, which is the actual cash flow from operations of the
firm." Explain.

Question

Quizplus · Accepted Answer

Although it is a closer approximation of cash flow, EBITDA still includes sales that were made on credit and expenses for which the firm has not yet paid cash.

True, False, or Uncertain: "Adding Depreciation, Depletion, and Amortization Back