- CFA Exams
- CFA Exam: Level I 2021
- Study Session 9. Financial Reporting and Analysis (4)
- Reading 29. Financial Reporting Quality
- Subject 4. Detection of Financial Reporting Quality Issues
CFA Practice Question
Based on GAAP, which item should be excluded from the calculation of EBITDA?
B. Equity-based compensation
C. Goodwill amortization
A. Restructuring costs
B. Equity-based compensation
C. Goodwill amortization
Correct Answer: C
Taxes, interest costs, depreciation, and amortization are excluded from net income in the EBITDA calculation.
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