Asked by Jaida McNair on Jul 06, 2024
Verified
The income statement line item that shows the performance of operating activities without consideration of financing is:
A) net income.
B) EBIT.
C) EBT.
D) total assets.
Operating Activities
Business actions that relate directly to the production, sale, and delivery of a company's goods or services, reflected in its cash flow.
EBIT
Earnings Before Interest and Taxes, a measure of a firm's profit that excludes interest and income tax expenses.
Income Statement
A financial statement showing a company's income, expenses, and profits over a specified period, typically a quarter or year.
- Differentiate among various income statement line items and their implications on business performance.
Verified Answer
RG
Ricardo GarzaJul 11, 2024
Final Answer :
B
Explanation :
EBIT (earnings before interest and taxes) shows the performance of operating activities without considering the impact of financing activities such as interest expense or interest income. It is calculated as revenue minus operating expenses.
Learning Objectives
- Differentiate among various income statement line items and their implications on business performance.