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for trading business interest expense is always non-operating expense because of that "the person who use trading business is only to sell and purchase of goods" so the business activity is only to purchase and sell of goods. in this type of business, to perform these activities may face the expenses like transportation, employee salary and rent expenses and sort of thing. rather than interest expense which is an another expense these expense not use to generate operational goods in this type of business or operational income
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Why debenture interest is expense but not within operating expense?
Issuance of debendutres is not an operating activity that's why interest on debenture is also a non operating expense
Is loan interest is operating expense or non operating expenses?
Non-Operating Expense
Is interest expense listed on the income statement as an operating expense?
yes
Unused fees on credit line should be operating expenses or interest expense?
Interest Expense
Why is interest expense treated as non operating expense?
Interest expenses are not operating expenses because interest is normally a financing activity as finance is acquired to run business operating activity is to manufacture product for sale.
Consider that you have a small business. If you have a revenue income of Php50,000 and operating expenses of Php10,000, and interest income 0f Php5,000.00 and interest expense of Php2,000.00, how much is your net operating expense?
Consider that you have a small business. If you have a revenue income of Php50,000 and operating expenses of Php10,000, and interest income 0f Php5,000.00 and interest expense of Php2,000.00, how much is your net operating expense? What can you say about the financial position of your small business. Reason out.
Where the interest expense in cash flow statement?
Interest expense can be shown in cash flow from operating activities as well as cash flow from financing activities as well.
Is toner an office expense or an operating expense?
Office expense
Restructuring charges be classified as an operating expense or as a nonoperating expense?
Should restructuring charges be classified as an operating expense or as a nonoperating expense?
What is the payment for the use of borrowed money?
Payment made for the use of borrowed money is called interest. Interest expense is shown on an income statement as a non-operating expense.
What is the formula for times interest earned ratio?
Times Interest Earned = Operating Income/ Interest Expense.
Is an administrative expense an operating expense?
yes
