______ is a measure of what the firm would have earned if it didn't have any obligations to creditors or tax authorities.
A)Net Sales
B)Operating Income
C)Net Income
D)Non-operating Income
E)Earnings Before Interest and Taxes

Question

Quizplus · Accepted Answer

Earnings Before Interest and Taxes (EBIT) is a measure of a firm's operating profitability without considering the impact of interest expense or income tax payments. It is calculated as the difference between revenue and operating expenses, and is an indicator of the company's ability to generate profits from its core operations.

______ Is a Measure of What the Firm Would Have