Earnings Before Interest and Taxes Are Calculated as

question 20

Multiple Choice

Earnings before interest and taxes are calculated as

• A)total revenues − costs.
• B)total revenues − costs − depreciation.
• C)total revenues − costs + depreciation - taxes.
• D)total revenues − costs − depreciation − taxes.

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Definitions:

Decision Making

The process(es) by which an individual selects one course of action from among alternatives.

Problem Solving

The process of finding solutions to difficult or complex issues.

Deductive Reasoning

A process of logical reasoning from one or more statements (premises) to reach a logically certain conclusion.

Modus Ponens

A logical argument form and a rule of inference that, if a premise implies a conclusion and the premise is true, then the conclusion must also be true.