CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

What is another name for operating profit?

A. Gross profit
B. Earnings before interest and taxes
C. Net income before taxes
D. Net income
Correct Answer: B

Another name for operating profit is earnings before interest and taxes, or EBIT.

User Contributed Comments 10

User Comment
Alfa1 gross profit = EBIT
kalps GOperating profit = earnings before interest and tax (EBIT)
vincenthuang gross profit=EBIT= operating profit
tony1973 No vincenthuang. Gross profit does not equal operating profit.
cbb1 Gross Profit = Revenues less COGS, but Operating Profit = Gross Profit less AS&G.
kimsan Unless one is operating under the banking industry, interest expenses can not be considered as operating expenses.
asianl6 how's B and C different? only that B excludes interest?
dipuo exactly that, asian!
nagri Correcting asian and Dipuo
B&C are differnt not only by interest but also AS&G as cbb1 has clearly explained.
Gross Profit = Sales-COG
Operating Profit= Sales-COG-AS&G or = EBIT
mordja ahhh, think you are comparing A to B nagri.

asian and dipuo are correct when comparing B to C.
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