FREE Trial

Should interest on financial liabilities always be treated as an expense?

Question:

Should interest on financial liabilities always be treated as an expense?

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Answer rating: 100% (1 review)

Interest on financial liabilities should generally be treated as an expense in a company s financial statements This is in accordance with accounting …View the full answer


answer-question
Answered By
tutor-profile-image
Ma Kristhia Mae Fuerte
I have extensive tutoring experience, having worked as a private tutor for over three years. I have tutored students from different academic levels, including high school, undergraduate, and graduate levels. My tutoring experience has taught me to be patient, attentive to student needs, and effective in communicating difficult concepts in simple terms. I have a strong background in statistics, probability theory, data analysis, and data visualization. I am proficient in using statistical software such as R, Python, and SPSS, which are commonly used in academic research and data analysis. Additionally, I have excellent communication and interpersonal skills, which enable me to establish rapport with students, understand their learning styles, and adapt my teaching approach to meet their needs. I am passionate about teaching and helping students achieve their academic goals.
0.00 0 Reviews 10+ Question Solved
Related Book For  answer-question
Financial Accounting

Financial Accounting

ISBN: 9781743767382

9th Edition

Authors: Craig Deegan

See More Books
Question Details
Chapter # 14- Accounting treatment for financial instruments
Section: Review question
Problem: 38
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: September 05, 2023 14:58:59
See More Questions

Students also viewed these Business questions

Q:
This case uses both the income statement (statement of operations) and the balance sheet of Amazon.com in Appendix A at the end of the book. It will help you understand the closing process of a...
A:
Req 1 closing entries all amounts in millions Journal DATE ACCOUNTS AND EXPLANATIO......
Q:
On 1 January 20X4, Plastik acquired 80 per cent of the equity share capital of Subtrak. The consideration was satisfied by a share exchange of two shares in Plastik for every three acquired shares in...
A:
Thorough calculations and explanations a Consolidated Profit and L......
Q:
Select the correct answer for each of the following questions. 1. In the preparation of a consolidated income statement : a. Income assigned to noncontrolling shareholders always is computed as a pro...
A:
1 d Only when the depreciable asset is resold to a third party in the current period will the deferred gain be realized making NCI in income greater t......
Q:
StudentGrades.java import java.io.File; import java.io.FileReader; import java.io.IOException; import java.io.PrintWriter; import java.util.Map; import java.util.Scanner; import java.util.Set; import...
A:
StudentGrades java import java io File import java io IOException import java util HashMap import java util Map import java util Scanner public class StudentGrades public static void main String args......
Q:
What is stakeholder analysis? Discuss three stakeholders that would be relevant for most projects.
A:
Stakeholder analysis is a systematic process that identifies all parties that will b......
Q:
A 0.9-m3 rigid tank is divided into two equal compartments by a partition. One compartment contains Ne at 20oC and 100 kPa, and the other compartment contains Ar at 50oC and 200 kPa. Now the...
A:
The temperatures and pressures of two gases forming a mixture are given The final mixture temperatur......
Q:
The Clark Corporation advertises everything it produces. (Axy: x advertises y; Pxy: x produces y) Translate the following statements into symbolic form.
A:
To translate the statement The Clark Corporation advertises everything it......
Q:
Wambaugh Corp. has decided to implement an activity- based costing system for its in-house legal department. The legal departments primary expense is professional salaries, which are estimated for...
A:
a Allocation rate Cost Allocation base Contracts rate 270 000 500 000 0 54 p......
Q:
Consider an application where traffic images were captured every minute at various junction points of the city. What solution you suggest for the storage and processing of such data? Justify your...
A:
For the storage and processing of traffic images captured every minute at various junction points of the city I would recommend a combination of cloud......
Q:
Use the T Accounts for Moose Inc to create their Trial Balance as of December 31, 2022. The account numbers are in parentheses next to the account name. Trial Balance Account Number 100 110 120 130...
A:
Click to View...
Q:
Would it ever be appropriate to classify the distributions to holders of preference shares as interest expense rather than dividends? Explain your answer.
A:
Yesin certain circumstances it could bebut it depends upon the nature of the preference shares......
Q:
Where are the gains and losses on a futures contract reported? Is the reporting of the gains or losses on a futures contract influenced by whether or not the contract is used as part of a hedging...
A:
The gains or losses on a futures contract would be taken to profit or loss as they occur While this is the general treatment of gains or losses on fut......
Q:
Given that G = 50 I = 40 C = 0.75Y d + 45 T = 0.2Y + 80 calculate the equilibrium level of national income.
A:
Y C I G Y 0 75 45 40 50 Y 0 75 135 Now Y......
Q:
If n= cos (logy), then show that (1-??) - (2n+1) - (n+m? Yn
A:
The detailed......
Q:
QUESTION: In the context of microprocessors, discuss the key differences between Harvard architecture and von Neumann architecture, highlighting their advantages and disadvantages Provide relevant...
A:
The detailed......
Q:
QUESTION: Explain the role of the control unit in a microprocessor and how it manages the execution of instructions. Provide relevant examples to illustrate its functioning
A:
The detailed......
Q:
Question: In the context of microprocessors, explain the concept of pipe lining and discuss its advantages and limitations in optimizing computer performance.
A:
The detailed......
Q:
QUESTION: In the context of microprocessors, compare and contrast RISC (Reduced Instruction Set Computing) and CISC (Complex Instruction Set Computing) architectures, highlighting their design...
A:
The detailed......
Q:
A waveguide filled with a material whose r = 2:25 has dimensions a = 2 cm and b = 1:4 cm. If the guide is to transmit 10.5-GHz signals, what possible modes can be used for the transmission?
A:
Application of Eq 8 106 with up c 3 108 2 25 2 108 m......
Q:
The sales department of P. Gillen Manufacturing Company has forecast sales in March to be 20,000 units. Additional information follows: Finished goods inventory, March 1 . . . . . . . . . . . . . . ....
A:
a b Region East 15 000 West Total S Mil......
Q:
The following information is from the 2009 annual report of American Greetings Corporation (all dollars in thousands). The following information comes from the notes to the company's financial...
A:
a Finished goods are manufactured inventory items that are ready for resale Work in process is inven......
Q:
Crescent Electronics has enjoyed tremendous sales growth during the last 10 years. However, even though sales have steadily increased, the company's CEO, Anne Healy, is concerned about certain...
A:
a 2012 2011 2010 Current ratio Gross profit rate Profit margin ratio Inventory turnover ratio Days in inventory b The companys current ratio has incre......
Q:
In a discussion of dramatic increases in coffee bean prices, a Wall Street Journal article noted the following fact about Starbucks. Before this years bean-price hike, Starbucks added several...
A:
In a period of changing prices the cost flow assumption can have a significant impact on income and......
Management Accounting European Perspectives 1st Edition - ISBN: 0198289669 - Free Book