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Why are discounts allowed listed as a finance expense of the business?
Wiki User
∙ 9y ago
a supplier offers a discount for prompt payment. this is considered financing the customer the "discount amount" for the additional days of the net due date when the customer does not take the early pay discount. so when the customer pays the full amount on the net due date, the amount above the discount amount is considered interest revenue. it is treated as such on the financial statements. Even discount allowed is when the seller of goods or services grants a payment discount to a buyer. When the seller allows a discount, this is recorded as a reduction of revenues, and is typically a debit to a contra revenue account.
Wiki User
∙ 9y ago
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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.
Is interest expense a selling or general and administrative expense?
Interest expense is neither selling or administrative, and it's too significant to be called a general expense. Interest expense is usually called a finance expense and is usually listed separately from SG&A, on the Income Statement
What the different between accounting and finance?
Accounting is a phylosophical science that helps to a language by which you can understand any information passed by a business. Finance is an important tool of a busuness that helps to solve any kind of finantial problem faced by the business.
in what business spreadsheets would most useful?
Pretty much any business. They can used for inventory control, finance purposes, employees, etc.
Impact of finance on financial statements?
Finance are the reason for financial statements. Without financial information, financial statements can't be created. Investors use this information to make decisions about investing in a business.
What is the difference between finance expense and administrative expense?
Finance expense is that amount paid for the acquisition and using debt or equity finance like interest, brokerage fee, etc Administrative expense is that amount which is used to run day to day activities of business like admin staff salaries rent insurance etc
What are the typical examples of financing decisions regarding the wrong source of finance to the wrong business expense?
Typical examples of financing decisions regarding the wrong source of finance to the wrong business expense include spending money meant for education programs on road infrastructure.
What does miscellaneous mean in business?
Generally it means things that do not fit into established categories. For example, in finance or accounting, a miscellaneous expense is one that cannot or is not convenient to be entered into categorized expense accounts and is thus entered into the miscellaneous expense account.
What is defered expense?
Deferred int expenses is a term used in accounting for business and finance. It is used to refer to the interest on loans and payments, which is considered an expense that is deferred, or expected to be paid at a later date.
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.
Does George Mason University offer a minor in finance?
No, George Mason University does not offer a minor in finance, but it offers a minor in business (MSOM)! Students that major in Accounting, Finance, Information Systems and Operations Management, Management, or Marketing; are not allowed to minor in business.
What is a finance expense?
Finance expenses are those expense which paid by company to acquire or borrow money from open market or financial market like interest, brockrage fee etc.
What are the importance of business finance?
What is objective of business finance? Why finance is important for a business? purchase of asset income daily expenses taxation
Guarantee in terms of business finance?
Guarantee in terms of business finance
Is business study the same as business fiance?
HI!no, business studies is not the same as business finance. although business finance is included in a business studies course; finance obviously plays a big part in a business.:)
What is the population of ASC Finance for Business?
The population of ASC Finance for Business is 2,011.
What is ASC Finance for Business's population?
The population of ASC Finance for Business is 30.
