While calculating operating profit which will be added to net profit? |
Preliminary Expenses Written off Depreciation Loss on Sale of Asset All of the Above |
All of the Above |
When calculating operating profit, all of the mentioned items – Preliminary Expenses Written off, Depreciation, and Loss on Sale of Asset – are typically added to the net profit. These items are considered non-operating expenses, and adding them back to the net profit helps arrive at the operating profit figure, which represents the profit generated from the core operating activities of the business. |