Question 20 Which of the following statements is the most accurate as it pertains to the use of accounting profits? A The EBIT is preferred as it reflects operting profits before depreciation and amortiztion. Depreciation does not require an outlay of cash and should not be included in the calculation of profits. B The EBITDA is preferred as it reflects operting profits after depreciation and amortiztion. Depreciation requires an outlay of cash and should be included in the calculation of profits. © The EBITDA is not preferred as it reflects operting profits before depreciation and amortiztion. Depreciation does not require an outlay of cash and should not be included in the calculation of profits. D) The EBITDA is preferred as it reflects operting profits before depreciation and amortiztion. Depreciation does not require an outlay of cash and should not be included in the calculation of profits. 5 Points