Interest Expense: Interest Expense: The Costly Connection to Cash Flow and Net Income
kncmarine 03.18, 2024 BookkeepingComments Off on Interest Expense: Interest Expense: The Costly Connection to Cash Flow and Net IncomeSuppose a company has a total interest expense of $ for a financial year; however, they have only paid $ by the time of financial statement preparation. Following the accrual accounting system, the interest expense of $ will be recorded in the income statement, and $49000 will be added to the liabilities as interest payable. The interest expense is recorded in the income statement as a non-operati...