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#cfa-level-1 #reading-25-understanding-income-statement
Operating profit is sometimes referred to as EBIT (earnings before interest and taxes).
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2. COMPONENTS AND FORMAT OF THE INCOME STATEMENT
segment level. The specific calculations of gross profit and operating profit may vary by company, and a reader of financial statements can consult the notes to the statements to identify significant variations across companies. <span>Operating profit is sometimes referred to as EBIT (earnings before interest and taxes). However, operating profit and EBIT are not necessarily the same. Note that in both Exhibits 1 and 2, interest and taxes do not represent the only differences between earnings (net incom


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