Target Exam

CUET

Subject

Business Studies

Chapter

Financial Management

Question:

What is the full form of EBIT?

Options:

Earning Before Income Tax

Earning Before Interest and Tax

Expense Before Income and Tax

Expenses Before Interest and Tax

Correct Answer:

Earning Before Interest and Tax

Explanation:

The correct answer is Option (2) → Earning Before Interest and Tax

EBIT stands for Earnings Before Interest and Taxes. It is a financial metric that measures a company's profitability from its core operations before accounting for the impact of interest expenses and income taxes.

It is often used interchangeably with Operating Income or Operating Profit.