Which of the Following Statements Is Not Correct

question 10

Multiple Choice

Which of the following statements is not correct?

• A) EBITDA is looked at as a measure of the cash flow generated by operations.
• B) EBITDA measures the wealth created by the enterprise from its operations,independently of its financial income and expenses,charges for depreciation and amortization,and other adjustments such as provisions for doubtful accounts.
• C) EBITDA is also called operating profit.
• D) EBITDA helps in evaluating the firm's management's short-term ability to create wealth since it is not affected by long-term strategic decisions regarding financing and capital investment policies.