Why is interest expense a no operating expense, Basic Statistics

Assignment Help:

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


Related Discussions:- Why is interest expense a no operating expense

Test the hypothesis, Arnold Palmer and Tiger Woods are two of the best golf...

Arnold Palmer and Tiger Woods are two of the best golfers ever to play the game. To show how these two golfers would compare if both were playing at the top of their game, the foll

Managerial accounting, Barker Company has a single product called a Zet. Th...

Barker Company has a single product called a Zet. The company normally produces and sells 80,000 Zets each year at a selling price of $40 per unit. The company’s unit costs at this

Determine the probability - probability example, 1. This question has multi...

1. This question has multiple parts. For a distribution of scores with = 82 and standard deviation = 2.5, find the following: (Don't forget to sketch the normal curve to help

Ex. 3-12, EXERCISE 3-12 Computing Predetermined Overhead Rates and Job Cos...

EXERCISE 3-12 Computing Predetermined Overhead Rates and Job Costs [LO1,LO2, LO3, LO7] Kody Corporation uses a job-order costing system with a plantwide overhead rate based on ma

Generally accepted accounting principles-gaap, Generally Accepted Accountin...

Generally Accepted Accounting Principles-GAAP:  GAAP is an Americanized term for the accounting standards and procedures that need to be followed by companies while compiling their

Assignment, i want you to make my buisiness statistics assignment

i want you to make my buisiness statistics assignment

Functions of statistics .., Mention four characteristics and functions of s...

Mention four characteristics and functions of statistics

What is meaning of the ldd detection strategy, A, Suppose a CD player playe...

A, Suppose a CD player player tries to detect whether its partner is C player instead of a DD player by looking for external signals that are at least as typical for DD players tha

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd