Operating profit is known as ________.
A) earnings after interest and taxes
B) earnings before interest and taxes
C) earnings before depreciation and taxes
D) earnings after tax

Question

Quizplus · Accepted Answer

Operating profit is calculated as earnings before interest and taxes (EBIT). This is important because it shows how much profit a company is generating from its core operations, before factoring in interest and taxes. Option A and D refer to profit figures that have already taken interest and taxes into account, while option C refers to earnings before depreciation and taxes, which is different from EBIT.

Operating Profit Is Known as ________