Question

185.) The term Cash Profit indicates
(A) Net Profit + Depreciation
(B) Net Profit - Interest - Tax
(C) Gross Profit + Interest + Depreciation
(D) Net Profit before Depreciation,
Interest and Tax​

Answer 1

Answer:

Cash Profit includes:

(d) Net Profit before Depreciation, Interest and Tax

Explanation:

Cash Profit is the measure of real gain from a business entity. It is arrived after considering expenses but before deducting depreciation, interest, and taxes. Symbolically, cash profit is EBITDA (earnings before interest, taxes, depreciation, appreciation). EBITDA indicates the performance achieved by the organization and an appreciation of shareholder value. The higher the cash profit the higher may be the outgo of taxes. On the contrary, an organization may overshoot expenditure which curtails the profitability and thus resulting in losses.  

Cash profit is the Net Profit before Depreciation,

Interest and Tax​:

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