Which of the following is the equation form of earnings before taxes (EBT)?
A) liabilities + owner's equity
B) gross profit − operating expenses
C) operating profit − other revenues and expenses
D) variable cost per unit × sales quantity
E) income − COGS

Question

Quizplus · Accepted Answer

Earnings before taxes (EBT) is calculated by subtracting total operating expenses from operating profit. Option C represents this calculation.

Which of the Following Is the Equation Form of Earnings