Why is interest expense a no operating expense, Basic Statistics

Why is interest expense a no operating expense?

Attention cost is a no operating cost when it is not part of a business's primary functions. For example, a store's primary functions are the purchasing and purchase of products, and producers primary functions are the production and purchase of goods.  Neither the store nor the maker has as its primary functions the credit and loaning of money. (On the other hand, a loan company’s primary function includes interest cost on its depositors’ benefits accounts and interest earnings on its loans and connection assets.)

By confirming interest cost as a no operating cost, it also allows for a better comparison between the operating incomes of a store that has little debts with a store that has a lot of debts.

Expertsmind.com offers unique accounting assignment help

Posted Date: 3/31/2012 7:29:18 AM | Location : United States







Related Discussions:- Why is interest expense a no operating expense, Assignment Help, Ask Question on Why is interest expense a no operating expense, Get Answer, Expert's Help, Why is interest expense a no operating expense Discussions

Write discussion on Why is interest expense a no operating expense
Your posts are moderated
Related Questions
Data Analysis: A qualitative survey was conducted in order to understand the impact of international accounting standards. To start with, a secondary research was done to unders

difference between histogram and historigram

a fair die is thrown 3 times. Let X1,X2,X3 denote the results of 3 throws. What is the probablity that p[X1>X2+X3]

What is a purchase return? A buy purchase return occurs when a buyer profits products that it has bought from a provider. Under the regular inventory system, the cost of the

The life-cycle hypothesis is based on the assumption that people try to smooth their consumption over their expected adult lifetimes.  Suppose Tammy expects to live for another T y


All Excel output should be copied into a single Word document where you must enter all of your responses to the questions below. Format the document professionally so it flows well

1. Compute the z scores for the following raw scores where   = 78 and the standard deviation = 4. a. 72 b. 82 c. 78 d. 87 e. 71

The trial balance of the Parton Wholesale Company contained the following accounts at December 31, 2010 the end of the company’s calendar year. PARTON WHOLESALE COMPANY Trial Bala

who is the mathematician who invented replacement theory of operation research