Which of the following best represents operating income?
A) Income after financing activities
B) Earnings before interest and taxes
C) Income from capital gains
D) Income from discontinued operations

Question

Quizplus · Accepted Answer

Operating income, also known as earnings before interest and taxes (EBIT), represents income from the primary business operations of a company before any interest expenses or taxes are deducted. It is a measure of a company's profitability from its core business activities, and excludes any income or expenses from non-operating activities such as financing, capital gains or discontinued operations.

Which of the Following Best Represents Operating Income