Q28
EBIT is usually the same thing as.
A.
funds provided by operations
B.
earnings before taxes
C.
net income
D.
operating profit
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
EBIT is usually the same thing as operating profit. Earnings before interest and taxes (EBIT) is a company's net income before income tax expense and interest expense have been deducted. EBIT is used to analyze the performance of a company's core operations without tax expenses and the costs of the capital structure influencing profit.