The income statement begins with revenue and subtracts various operating expenses until arriving at Earnings Before Interest and

Question

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The income statement begins with revenue and subtracts various operating expenses until arriving at Earnings Before Interest and

Taxes. Next, interest expense is subtracted to find the taxable income for the period. Then the appropriate taxes are calculated and subtracted. We finally arrive at the ________ , the so called bottom line of the income statement. Group of answer choices

Business

1 answer:

Serggg [28] · Answer 1 · 2024-01-29T03:28:10+03:00

Full question attached

Answer:

D. Earnings before interest and taxes(EBIT)

Explanation:

Earnings before interest and taxes abbreviated EBIT in the income statement is arrived at by deducting operating expenses from revenue/sales to get operating income. The operating income is earnings before interest and taxes which comes before gross income(subtract other expenses). Operating expenses are the main expenses concerned with operations of the business such as the Sales