Which type of expense is the interest that is paid on loans? • Financ
A. Management Expense
B. Financial Expense
C. Impairment expense
Right Answer is: B
• Financial Expense is the cost incurred by an entity such as businesses for borrowed funds, assets or property.
• It is a non-operating expense that is shown on the income statement.
• It represents the interest paid on any borrowings such as bonds, Line of credit or convertible debt etc.