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Question

Operating profit is also known as operating income, or earning before _______.

A
investment and income
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B
income and taxes
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C
interest and taxes
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D
Investment and taxes
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Solution

The correct option is C interest and taxes
Operating profit is the profit earned through the normal operations and activities of the business. However, while calculating operating profit expenses which are of financial nature are not taken into consideration. Operating profit is the excess of operating revenue over operating expenses.

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