Determine the term- profit before taxation and interest, Financial Management

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Determine the term- Profit before taxation and interest

Profit before taxation and interest can also be used here in addition to profit for the period. Whichever figure is taken it's significant than to adjust for the relevant items accordingly (that implies if using profit for the year adjust for income tax expense and finance charge presented in the income statement -cash outflows for these are then calculated later on the statement of cash flows).

 


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