[amp_mcq option1=”funds provided by operations” option2=”earnings before taxes” option3=”net income” option4=”operating profit” correct=”option4″]
The correct answer is: D. operating profit.
EBIT stands for earnings before interest and taxes. It is a measure of a company’s profitability before taking into account the costs of financing and taxation. EBIT is calculated by taking a company’s net income and adding back interest expense and taxes.
Funds provided by operations is a measure of a company’s cash flow from operations. It is calculated by taking a company’s net income and adding back depreciation and amortization.
Net income is a measure of a company’s profitability after taking into account all costs, including interest expense and taxes. It is calculated by taking a company’s revenues and subtracting costs of goods sold, operating expenses, interest expense, and taxes.
Operating profit is a measure of a company’s profitability from its core business operations. It is calculated by taking a company’s revenues and subtracting costs of goods sold and operating expenses.
In conclusion, EBIT is usually the same thing as operating profit.