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Question
_____________ = net profit + non operating expenses - non operating incomes.
_____________ = net profit + non operating expenses - non operating incomes.
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Solution
The correct option is D Operating Profit
Operating profit is defined as the profit earned by the business from its core business activity. There are certain item of non operating expense and non operating income which are adjusted from operating profit to find out the net profit of the business.
For example, dividend received on investment is an example of non operating income and loss on sale of fixed asset is an example of non operating expenses.
Hence, Operating Profit = Net profit + Non Operating Expenses - Non operating income.
Operating profit is defined as the profit earned by the business from its core business activity. There are certain item of non operating expense and non operating income which are adjusted from operating profit to find out the net profit of the business.
For example, dividend received on investment is an example of non operating income and loss on sale of fixed asset is an example of non operating expenses.
Hence, Operating Profit = Net profit + Non Operating Expenses - Non operating income.
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