The concept of EBITDA attempts to measure GAAP net income more accurately.

Name: The concept of EBITDA attempts to measure GAAP net income more accurately.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a measure of a company's operating performance and does not attempt to measure GAAP net income more accurately; instead, it excludes the effects of financing and accounting decisions.

The Concept of EBITDA Attempts to Measure GAAP Net Income