Earnings before interest and taxes:
A)is the same as EBITDA.
B)refers to the gross profit minus operating expenses minus interest.
C)refers to gross profit minus operating expenses.
D)Both A and C.

Question

Quizplus · Accepted Answer

Earnings before interest and taxes (EBIT) refers to gross profit minus operating expenses. It does not take into account interest or taxes, so it is not the same as EBITDA (which adds back depreciation and amortization) and does not subtract interest. Option B is partially correct, but it includes interest in the calculation, which is not part of EBIT. Therefore, the best choice is C.

Earnings Before Interest and Taxes