______ is a measure of what the firm would have earned if it didn't have any obligations to creditors or tax authorities.
A) Net Sales
B) Operating Income
C) Net Income
D) Non-operating Income
E) Earnings before interest and taxes

Question

Quizplus · Accepted Answer

Earnings before interest and taxes (EBIT) is a measure of a firm's profit that includes all incomes and expenses (operating and non-operating) except interest expenses and income tax expenses. It shows what the firm would have earned without the cost of its debt and without tax obligations.

______ Is a Measure of What the Firm Would Have