Question

Operating profit of a chemical plant is equal to

• A. Profit before interest and tax
• B. Profit after tax plus depreciation
• C. Net profit + tax
• D. Profit after tax

Hint:

Operating profit is also known as EBIT (Earnings Before Interest and Tax).

Answer 1

The Correct Option is A

Operating profit is the profit earned from a firm's normal core business operations, excluding deductions of interest and tax.