Interest Expense Not On Income Statement

Interest payable is an account on a business s income statement that show the amount of interest owing but not yet paid on a loan.

Interest expense not on income statement. 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. Example a small cloud based software business takes out a 100 000 loan on june 1 to buy a new office space for their expanding team. Interest expense is included on the company s income statement and represents the interest accrued during a certain time period not necessarily the interest the company actually paid. Interest expense is one of the core expenses found in the income statement income statement the income statement is one of a company s core financial statements that shows their profit and loss over a period of time.

It is essentially. These expenses highlight interest accrued during the period and not the interest amount paid over the time period. Interest expense is a non operating expense shown on the income statement. It represents interest payable on any borrowings bonds loans convertible debt or lines of credit.