Net profits after taxes are defined as
A) gross profits minus operating expenses.
B) sales revenue minus cost of goods sold.
C) EBIT minus interest.
D) EBIT minus interest and taxes.

Question

Quizplus · Accepted Answer

Net profits after taxes are the profits that a company earns after deducting all the expenses, including interest and taxes, from its earnings before interest and taxes (EBIT). This is why option D, "EBIT minus interest and taxes," is the correct answer. Choice A, "gross profits minus operating expenses," and choice B, "sales revenue minus cost of goods sold," are is not accurate definitions of net profit after taxes.

Net Profits After Taxes Are Defined as