Answer Posted / ashish shrivastava
when the company earn profit from their normal business
transaction that is operating profit. many company do the
business with manufacturing unit or without manufacturing
unit so they prepare their books of accounts with or
without manufacturing a/c and many companies prepare
trading a/c after that they perpare P&L Account and get the
net profit from this account and that is also called EBIT
after that they deduct from it Interest on debenture and
TAX of the company so after that they can get the actual
operating profit.
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