BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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EBIT is usually the same thing as
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funds provided by operations
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earnings before taxes
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net income
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operating profit
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Explanation:
Detailed explanation-1: -Operating profit is a company’s earnings after deducting operating expenses and Cost of Goods Sold (COGS). It’s also known as EBIT (earnings before interest and taxes).
Detailed explanation-2: -The key difference between EBIT and operating income is that EBIT includes non-operating income, non-operating expenses, and other income. EBIT is often used as an alternative to net income since EBIT shows a company’s net income without the cost of interest on debt and tax expenses.
Detailed explanation-3: -EBIT is usually the same thing as: funds provided by operations.
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