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Interest expense represents an amount of interest payable on any borrowings which includes loans bonds or other lines of credit and its associated costs are shown on the income statement.
Interest expense as reported on the income statement. It represents interest payable on any borrowings bonds loans convertible debt or lines of credit. Interest expense is a non operating expense shown on the income statement. The unamortized bond discount. Interest expense is reported on the income statement as a function of.
The profit or loss is determined by taking all revenues and subtracting all expenses from both operating and non operating activities this statement is one of. In other words if a company paid 20 in interest on its debts and earned 5 in interest from its savings account the income statement would only show interest expense net of 15. It is essentially.
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