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      Question

      A company reports: • Revenue:

      ₹10,00,000  • Cost of Goods Sold: ₹6,00,000  • Administrative Expenses: ₹1,50,000  • Interest Expense: ₹80,000  • Tax Expense: ₹70,000 What is EBIT?
      A ₹1,00,000 Correct Answer Incorrect Answer
      B ₹2,50,000 Correct Answer Incorrect Answer
      C ₹1,70,000 Correct Answer Incorrect Answer
      D ₹3,30,000 Correct Answer Incorrect Answer
      E ₹2,80,000 Correct Answer Incorrect Answer

      Solution

      EBIT (Earnings Before Interest and Taxes) is a financial metric measuring a company's operational profitability by calculating revenue minus operating expenses, excluding tax and interest costs. It is used to assess core business performance independently of financing or tax structures.  EBIT = Revenue − COGS − Operating Expenses = 10,00,000 − 6,00,000 − 1,50,000 = ₹2,50,000

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