BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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gross profits minus operating expenses
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sales revenue minus cost of goods sold
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EBITDA minus interest
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EBIT minus interest and taxes
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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.