BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Net profit after taxes is ____
A
gross profits minus operating expenses
B
sales revenue minus cost of goods sold
C
EBITDA minus interest
D
EBIT minus interest and taxes
Explanation: 

Detailed explanation-1: -Net income – this is also the net profit or the company’s bottom line. Interest – the company’s profit deducted before calculating net income.

Detailed explanation-2: -Earnings before interest and taxes (EBIT) is an indicator of a company’s profitability. EBIT can be calculated as revenue minus expenses excluding tax and interest. EBIT is also referred to as operating earnings, operating profit, and profit before interest and taxes.

Detailed explanation-3: -Earnings before interest and taxes (EBIT) is a company’s net income before interest and income tax expenses have been deducted.

Detailed explanation-4: -Net income after taxes is calculated by taking revenue and subtracting all of a company’s expenses and costs, including the following: Cost of goods sold, which represents the costs involved in production including direct labor and direct materials or inventory.

There is 1 question to complete.