Which One of the Following Expense Categories Is Subtracted from Total

question 90

Multiple Choice

Which one of the following expense categories is subtracted from total revenues to help arrive at a firm's EBIT (Operating Income) ?

• A)cash dividends
• B)depreciation expense
• C)interest expense
• D)tax liability

---

Definitions:

Cash Cycle

The duration between the initial cash outlay for the purchase of inventory and the collection of cash from customers from sales, essentially measuring the liquidity efficiency of a company.

Purchasing Inventory

The process of acquiring goods and materials that a business sells or uses in its production process, an essential component of supply chain management.

Fixed Asset Sale

The process of selling long-term assets, such as property, plant, and equipment, for cash or other compensation.

Cash Increase

A rise in the amount of cash and cash equivalents held by a business.