Interest Expense

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Definitions
Effective Interest Method
Effective Interest Method Bond Accounting Interest Expense Carrying Amount Accounting Period Effective Interest Rate
A method for accounting for bond premiums or discounts.
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Definitions
Financing Cost
Financing Cost Borrowing Costs Interest Expense Financial Management
Financing cost refers to the expense incurred by an entity for funding its operations and activities. These costs can include interest payments on loans, fees for issuing bonds or equity, and other related expenses.
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Definitions
Times Interest Earned (TIE)
Times Interest Earned TIE Financial Ratios Debt Management EBIT Interest Expense Solvency Ratios
A crucial financial ratio that measures a company's ability to meet its debt obligations, calculated by dividing earnings before interest and taxes (EBIT) by the interest expenses for the same period.
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Definitions
Unstated Interest
Unstated Interest Imputed Interest Installment Sale Interest Income Interest Expense Tax Implications
When no interest or low interest is provided in an installment sale agreement, part of each payment will be treated as interest. The amount treated as interest is referred to as unstated or imputed interest.
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