Why Is It Important to Assess Operating Profit

Multiple Choice

Why is it important to assess operating profit?

A) Operating profit represents the firm's profits after consideration of all revenues, expenses and comprehensive income.
B) The figure for operating profit provides a basis for assessing the success of the firm apart from its financing and investing activities and separate from tax considerations.
C) Operating profit represents the firm's profits after consideration of all revenues and expenses.
D) Operating profit represents the firm's profits after consideration of all revenues and expenses, except for taxes.