Calculating interest expense on a payable bond should be relatively straightforward, but then the accountants got involved. Generally accepted accounting principles, or GAAP, turn what is ordinarily a ...

If you take a loan to buy investment assets, any interest that you pay on that loan is called an "investment interest expense." Under some circumstances, the IRS allows you to deduct investment ...

Discover how accruals affect company finances, with insights into the accrual accounting method, its applications, and ...

Companies in need of cash commonly turn to long-term debt, such as issuing bonds and obtaining bank loans. The interest that accrues on long-term debt is treated as a business expense for both book ...

Interest expense, net income, and EBIT are three related financial metrics that all have to do with the profitability of a company. Here's what you need to know about calculating each one, and how ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Understanding how interest works can make borrowing feel less confusing and far more manageable. A simple interest calculator is a handy tool that helps you est ...

Fixed expenses are easier to plan around because they stay the same from one month to the next. Variable expenses, on the other hand, are less predictable. Understanding both types and how they impact ...

Paying interest on a business line of credit, a mortgage on your factory or office building, or on business credit cards is a common expense for many businesses. Until now, generally interest expense ...

Companies that use accrual accounting often end up with deferred expenses on their balance sheets. That's because under accrual accounting, accountants recognize expenses when they occur, not when the ...

As you work to create a budget, it’s important to understand how fixed and variable expenses will impact your bottom line. David McMillin writes about credit cards, mortgages, banking, taxes and ...