Multiple choice general knowledge

EBITDA does not include which of the following?

  1. Taxes

  2. Depreciation

  3. Amortization

  4. Expenditure
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization. It explicitly excludes interest, taxes, depreciation, and amortization from operating profit. However, capital expenditures (CAPEX) are also NOT included in EBITDA - they are separate cash outflows. Operating expenses (like salaries, rent, cost of goods sold) ARE included because they are subtracted to arrive at earnings. The question uses 'Expenditure' ambiguously but in financial context typically refers to capital expenditures, which EBITDA does not account for.

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