Which of the Following Is Not Included in Computing EBT

question 57

Multiple Choice

Which of the following is not included in computing EBT (earnings before taxes) ?

• A)Marketing expenses
• B)Depreciation expense
• C)Cost of goods sold
• D)Dividends

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Definitions:

Nominal Wage

The wage paid to employees in current dollars, without adjustment for inflation, reflecting the actual amount of money received.

Fisher Effect

Refers to the economic theory that real interest rates are independent of monetary measures, with any increase in expected inflation being matched by an equal increase in nominal interest rates over the long term.

Nominal Interest Rates

The interest rate before adjusting for inflation, representing the face value of interest paid or received.

Real Interest Rates

The interest rate that has been adjusted to remove the effects of inflation, reflecting the true cost of borrowing.