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No, it is neither an expense to you or income to the recepient.
Loans are investments, even in a personal sense, a balance sheet, not income statement item. The (presumably cash/money) asset is offset by having an asset of another type....normally a receivable or investment ...it just isn't cash. (The borrower receives cash asset and has a corresponding liability of the payable).
The income, presumably interest, on the loan is income. If the loan/investment isn't paid, and meets the qualifications for being a bad debt, the amount not repaid is an expense.
What else can I help you with?
Is interest on a loan an expense or liability?
Interest on a loan is considered an expense for the borrower and is recorded on the income statement, as it represents the cost of borrowing money. For the lender, interest income is recognized as revenue. However, the principal amount of the loan itself is classified as a liability on the borrower's balance sheet, representing the obligation to repay the borrowed funds.
Is a Payment for a vehicle Loan Liability considered an Expense that would show up in my monthly expense report in my Quicken XG 2004?
Yes payment of loan liability is your expense decreasing the liability as well as asset from which you are paying the loan liability.
Is mortgage loan a income or an expense?
Neither. The actual loan is a capital item and the interest on the loan is an expense for the borrower but income for the lender. The only time the loan itself becomes an expense item is when the unrecoverable portion needs to written off and then it becomes a bad debt. Repayment of the loan is entirely on the asset accounts for both the borrower and lender.
Is tithing an acceptable monthly expense when being considered for mortgage loan modification?
Is tithing an acceptable monthly expense when being considered for mortgage loan modification?
Where do you place loan interest in the trading account and is it an expense?
As an expense, loan interest should be placed in the debit side of the Profit & Loss A/c and not in the Trading a/c.
Is interest on a loan an expense or liability?
Interest on a loan is considered an expense for the borrower and is recorded on the income statement, as it represents the cost of borrowing money. For the lender, interest income is recognized as revenue. However, the principal amount of the loan itself is classified as a liability on the borrower's balance sheet, representing the obligation to repay the borrowed funds.
Is a Payment for a vehicle Loan Liability considered an Expense that would show up in my monthly expense report in my Quicken XG 2004?
Yes payment of loan liability is your expense decreasing the liability as well as asset from which you are paying the loan liability.
Is loan interest is operating expense or non operating expenses?
Non-Operating Expense
Is mortgage loan a income or an expense?
Neither. The actual loan is a capital item and the interest on the loan is an expense for the borrower but income for the lender. The only time the loan itself becomes an expense item is when the unrecoverable portion needs to written off and then it becomes a bad debt. Repayment of the loan is entirely on the asset accounts for both the borrower and lender.
Is tithing an acceptable monthly expense when being considered for mortgage loan modification?
Is tithing an acceptable monthly expense when being considered for mortgage loan modification?
Where do you place loan interest in the trading account and is it an expense?
As an expense, loan interest should be placed in the debit side of the Profit & Loss A/c and not in the Trading a/c.
Is part of a student loan meant for living expense?
most difinately not. it study loan.
What is a non monetary expense?
Monetary expense is basically a cash-money expense, so a non-monetary expense is an expense that isn't money. Some examples would be physical or personal expense.
How do you record loan using cash basis accounting?
When the money for the loan is received it is recorded as cash. Payments are not recorded until the actual payments are sent out. This will be recorded as a debit to a loan expense account and credited directly to cash. The interest is debited directly to an interest expense account and credited directly to cash for the same payment. A compound entry can be used for this purpose. There is no loan payable or interest payable accounts for cash basis accounting.
Can educational loan interest be deducted as an investment interest expense?
No.
What is the journal entry if an owner makes payments on a company loan and he will not be reimbursed by the company?
debit loan accountcredit owners equityDebit Loan Payable Debit Interest Expense Credit Paid in Capital
Is expense debit or credit?
If revenue (income of money) is a credit, then an expense (outflow of money) is a debit.
