Earnings before interest and taxes (EBIT) is a descriptive label for ________.
A) operating profits
B) net profits before taxes
C) earnings per share
D) gross profits

Question

Quizplus · Accepted Answer

Earnings before interest and taxes (EBIT) is a measure of a company's operational profitability, meaning it shows how much profit a company generates from its core operating activities. It is calculated by subtracting operating expenses from revenues. Thus, operating profits is the best choice for this description.

Earnings Before Interest and Taxes (EBIT) Is a Descriptive Label