Is "Income before provision for income taxes" equivalent to "EBT"? If so, how would you calculate...
Is "Income before provision for income taxes" equivalent to "EBT"? If so, how would you calculate it if lets say, "EBIT" = $5,000 and "Other income/(expense), net" = $2,000
Homework Answers
EBT - Earning before taxes
EBIT - Earnings before interest and taxes
EBT = EBIT - Interest
So, EBT is equivalent to income before provision for income taxes
EBT = $5,000 - $0(no interest mentioned in question)
= $5,000
Note: other income/(expense) will adjusted to arrive for EBIT, so again adjustment not required
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