Operating Profits or EBIT Is Used to Measure a Firm's

question 124

True/False

Operating profits or EBIT is used to measure a firm's profits on assets because it does not include the firm's cost of debt financing.

---

Definitions:

Elect Officers

The process of choosing individuals to hold positions of authority within an organization, typically through voting.

Major Division

A significant separation or segmentation within an organization, market, or field of study, typically characterized by distinct functions, products, or specialties.

Sarbanes-Oxley Act

A United States federal law that was enacted in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations.

Lead Auditor

A senior auditor responsible for managing the audit team and overseeing the audit process to ensure accuracy and compliance.