Question: Question 1 Why does finance add back depreciation and amortization in its measure of economic returns?Depreciation isn't a cash expense.Companies often overspend for assets, leading

Question 1
Why does finance add back depreciation and amortization in its measure of economic returns?Depreciation isn't a cash expense.Companies often overspend for assets, leading depreciation to be too high.Depreciation appears on the balance sheet, not the income statement.Depreciation is highly uncertain and should not be counted.
Question 1 Why does finance add back depreciation

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!