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Where does interest expense in the income statement?
Interest expense is shown at debit side of income statement because it is an expense for business.
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 Payment made for the use of borrowed money called?
Payment made for the use of borrowed money is called interest. Interest expense is shown on an income statement as a non-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?
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.
What is the formula for calculating interest coverage ratio?
operating income vefore interest and income taxes / annual interest expense
Where to post bad debt expense on income statement?
It should be posted under operating expense.
Does bank expense goes at income statement?
No, bank expenses do not typically go on the income statement. Bank expenses are usually recorded on the bank's own financial statements as part of their operating expenses. The income statement of a bank would typically include items such as interest income, loan loss provisions, and non-interest income.
What is the formula for times interest earned ratio?
Times Interest Earned = Operating Income/ Interest Expense.
Where is Depreciation Expense on the income statement?
Depreciation Expense is typically listed on the income statement as an operating expense, usually found within the section detailing operating expenses or costs of goods sold, depending on the nature of the business. It reduces the company's operating income and is subtracted from total revenue to calculate net income. This expense reflects the systematic allocation of the cost of tangible assets over their useful lives.
Which income statement account reports how much interest was incurred during the year?
interest expense
Does office depreciation expense go on income statement?
yes, under operating expenses
Is fuel an expense account?
Yes, fuel is typically classified as an expense account in accounting. It represents a cost incurred by a business for operating vehicles or machinery, and is recorded as an operating expense on the income statement. This expense reduces the company's net income for the period in which it is incurred.
