Interest expense

/Interest expense

Interest expense

Interest expense: Cash paid to lenders for the use of borrowed money

  • Most interest is a financing expense used for general operations
  • Some interest, such as interest in connection with construction, is capitalized and becomes a part of the overall cost of the asset
  • Interest is generated on debt from bonds, notes payable, and other company borrowings

K_10F_Interest_expense

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By | 2018-01-22T10:24:22+00:00 August 5th, 2015|0 Comments

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John Gillingham is a CPA and Accounting App Developer in San Francisco, California. Check the iOS App Store for Accounting Flashcards and the Debits & Credits Game. On Android: Learn Accounting Flashcards. Also on Kindle and iBooks.

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