Accountancy, asked by charu6789, 1 year ago

When calculating a firm's free cash cash flow from earnings before interest and taxes we must add back depreciation, amortization and depletion expense and allowances because: 1. the accounting method for reporting such expenses may be different from that reported to the taxing authority. 2. they approximate the value of fixed asset purchases during the year. 3. they are non-cash expenditures. 4. they are unrelated to the amount of taxes paid during the year?

Answers

Answered by SnehaG
0
when calculating a firm's free cash cash flow from earnings before interest and taxes we must add back depreciation, amortization and depletion expense and allowances because:
1. the accounting method for reporting such expenses may be different from that reported to the taxing authority.
2. they approximate the value of fixed asset purchases during the year. ✔✔✔✔
3. they are non-cash expenditures.
4. they are unrelated to the amount of taxes paid during the year
Answered by Anonymous
6
Heya Buddy here is ur answer ⤵️⤵️⤵️⤵️⤵️⤵️

❇️ Option 2 is the correct answer ✔️✔️


⭕ HOPE IT HELPS ⭕

⭐ By cute Einstein ⭐
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