Earnings Before Interest (EBI)adjusts net income for which one of the following groups of items?
A)Nonrecurring items,interest,and distortions related to accounting quality concerns.
B)Nonoperating items,after-tax interest,and distortions related to accounting quality concerns.
C)Nonoperating items,nonrecurring items,and after-tax interest.
D)Nonrecurring items,after-tax interest,and distortions related to accounting quality concerns.

Question

Quizplus · Accepted Answer

Earnings Before Interest (EBI) adjusts net income for nonrecurring items, after-tax interest, and distortions related to accounting quality concerns. Option D is the only one that includes all three of these items. Options A and B are incorrect because they only include some of these items, and option C includes nonoperating items which are not necessarily adjusted for in EBI calculations.

Earnings Before Interest (EBI)adjusts Net Income for Which One of the Following