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The answer is in the question really. It's the profit a business makes before depreciation is charged.
As depreciation is a non cash item it could be argued that it's the cash profit. However, there could be provision in there so calling it the cash profit is not strictly true.
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∙ 13y ago
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What do you mean by cash profit?
Cash profit means profit after tax plus depreciation.
Which method of depreciation would you use if you were to receive a bonus which is based on net profit?
which method of depreciation to use when bonus is received that is based on net profit
What you mean by cash?
Cash profit means profit after tax plus depreciation.
How Depreciation as aTax Shield?
Depreciation reduces the amount of profit or increases the overall expenses due to which profit also reduce and that's why less tax to be paid that's is why depreciation is called shield to reduce tax.
What is lost depreciation tax shield?
Lost depreciation tax means that loss of that tax amount which could be saved if there would be depreciation expenses in profit and loss account which will reduce the profit and hence the tax as well.
What is the expansion of PBDIT?
PBDIT stands for "Profit Before Depreciation Interest and Taxes" How to abbreviate "Profit Before Depreciation Interest and Taxes"? "Profit Before Depreciation Interest and Taxes" can be abbreviated as PBDIT.
What do you mean by cash profit?
Cash profit means profit after tax plus depreciation.
How does depreciation affect the profit margin?
Depreciation lowers the value of your assets. This in turn will lower your overall profit margin as well as your net worth.
Which method of depreciation would you use if you were to receive a bonus which is based on net profit?
which method of depreciation to use when bonus is received that is based on net profit
What do you mean by cash?
Cash profit means profit after tax plus depreciation.
What you mean by cash?
Cash profit means profit after tax plus depreciation.
Effects of final account if depreciation is ommitted?
if depreciation is omitted on final account it will Over state the profit .
How Depreciation as aTax Shield?
Depreciation reduces the amount of profit or increases the overall expenses due to which profit also reduce and that's why less tax to be paid that's is why depreciation is called shield to reduce tax.
What is lost depreciation tax shield?
Lost depreciation tax means that loss of that tax amount which could be saved if there would be depreciation expenses in profit and loss account which will reduce the profit and hence the tax as well.
What is the advantage of accelerated depreciation?
Accelerated depreciation allows a company to take a higher upfront depreciation expense. Higher depreciation means a lower profit, and lower taxes to pay.
Gross profit margin define?
EBITDA Earnings Before Interest Tax Depreciation and Amoortisation Also Revenue minus costs.
Does depreciation expense result in tax savings?
Yes depreciation expenses causes a reduction in taxes because depreciation is considered as expense which reduces the net profit and due to reduction of net profit tax amount also reduces.
