Provide the accounting for the following:
            Operating Revenues:                           $10,000,000
            Nonrecurring, non-operating gain:           $4,000,000
            Nonrecurring, non-operating loss:          $8,000,000
            Operating expenses:                               $6,000,000
A) EBITDA is no income
B) GAAP is no income
C) EBITDA is $4,000,000
D) None of the above

Question

Provide the accounting for the following: ​
            Operating Revenues:                             $10,000,000
            Nonrecurring, non-operating gain:           $4,000,000
            Nonrecurring, non-operating loss:          $8,000,000
            Operating expenses:                               $6,000,000
A) EBITDA is no income
B) GAAP is no income
C) EBITDA is $4,000,000
D) None of the above

Quizplus · Accepted Answer

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is calculated by subtracting operating expenses from operating revenues, which gives us $4,000,000 (10,000,000 - 6,000,000). The nonrecurring, non-operating gain and loss have no effect on EBITDA. GAAP (Generally Accepted Accounting Principles) is a set of accounting standards and principles that guide the preparation of financial statements, and it is not relevant to the calculation of EBITDA.

Provide the Accounting for the Following: ​

Provide the Accounting for the Following: