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Operating profit (ebit) - class-XI
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Which of the following is correct?
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A
Operating profit = Net profit + Non-operating expenses - Non-operating incomes
💡 Explanation:
Operating profit is the profit earned through the operating activities of the firm. This has been calculated as:
Gross Profit - Operating expenses = Operating Profit
Net Profit = Operating Profit - Non Operating Expenses + Non Operating Income.
Else,
Operating Profit = Net Profit + Non Operating Expense - Non Operating income