Earnings before taxes,or taxable income,is equal to operating income minus financing costs.

Question

Quizplus · Accepted Answer

This is because Earnings before taxes (EBT) is a measure of a company's profitability that excludes taxes and interest expenses. It is calculated by subtracting all expenses except for taxes and interest from a company's total revenue. Therefore, EBT is equal to operating income (revenue minus operating expenses) minus financing costs (interest expenses).

Earnings Before Taxes,or Taxable Income,is Equal to Operating Income Minus