Which of the Following Is (Are)deducted from EBIT to Determine

question 57

Multiple Choice

Which of the following is (are) deducted from EBIT to determine pretax income?

• A)Earnings per share
• B)Interest expense
• C)Corporate taxes
• D)Both B and C

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Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest in the company.

Owner's Drawings

The funds taken from the business by the owner for personal use, not considered as salary or wages.

Owner Drawings

Refers to the money or assets taken out of a business by the owner(s) for personal use.