Which of the Following Profit Measures Represents the Raw Operating

question 20

Multiple Choice

Which of the following profit measures represents the raw operating earnings of an entity?

• A) Profit after taxation.
• B) Earnings before interest and taxation (EBIT).
• C) Gross profit.
• D) Earnings before interest, taxation, depreciation and amortisation (EBITDA).

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Definitions:

Maximum Period

The longest allowable timeframe in which a certain event or condition can occur, often set by law, regulation, or agreement.

Copyright

Copyright provides legal protection for original works of authorship, giving the creator exclusive rights to use, distribute, and authorize the use of their work.

Amortized

The process of gradually writing off the initial cost of an asset over a period, or systematically reducing a loan balance through periodic payments of principal and interest.

Economic Life

The expected period of time during which an asset is useful to the average owner.