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

Question

Quizplus · Accepted Answer

Earnings before interest and taxes (EBIT) refers to the profits earned by a company before deducting interest and taxes. It includes all operating expenses, such as cost of goods sold and operating expenses, and is a measure of the company's operating performance. Therefore, B) operating profits is the best choice.

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