Asked by Madison Katelyn on May 20, 2024
Verified
EBIT, earnings before interest and taxes, is also called:
A) operating income.
B) net income.
C) financial income.
D) revenue.
Earnings Before Interest And Taxes
A financial performance measure that calculates a company's profitability before deductions for interest and taxes.
Operating Income
The amount of profit realized from a business's operations after deducting operating expenses such as wages, depreciation, and cost of goods sold.
- Comprehend the importance of EBIT in evaluating a firm's operating performance.
Verified Answer
CW
Christine WhippleMay 24, 2024
Final Answer :
A
Explanation :
EBIT refers specifically to a company's operational earnings before interest and taxes are taken into account, which is why it is also known as operating income. Net income refers to a company's total earnings after all expenses, including interest and taxes, have been deducted. Financial income refers specifically to income gained through financial investments, such as interest or dividends, and revenue refers to the total amount of money a company earns from sales or services.
Learning Objectives
- Comprehend the importance of EBIT in evaluating a firm's operating performance.
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