EBIT is usually the same thing as:
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A. B. C. D.D
EBIT stands for Earnings Before Interest and Taxes, and it is an accounting measure of a company's profitability. EBIT is calculated by subtracting a company's operating expenses (such as wages, rent, utilities, and depreciation) from its revenue.
Out of the answer choices provided, the correct answer to the question is B. Earnings before taxes. This is because EBIT represents a company's earnings before any interest expense and income taxes are deducted. Therefore, it is a measure of a company's operating profitability and excludes any non-operating expenses or income.
A. Funds provided by operations is not the same as EBIT, although it is related. Funds provided by operations refers to the cash generated by a company's core business operations, and it is calculated by adding back non-cash expenses (such as depreciation and amortization) to net income.
C. Net income is not the same as EBIT. Net income is a company's earnings after all expenses, including interest and taxes, have been deducted from revenue. Therefore, it is a broader measure of profitability that includes both operating and non-operating expenses.
D. Operating income is not the same as EBIT, although it is similar. Operating income is calculated by subtracting a company's operating expenses from its revenue, but it does not exclude any interest expense. Therefore, it is a measure of a company's operating profitability before income taxes but after interest expenses.