Interest Expense (Noun)
Meaning
Interest paid on loans.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company's financial report showed a significant increase in interest expense due to the high-interest loan taken for business expansion.
- Interest expense is a non-operating item on the income statement and represents the cost of borrowing money.
- For the quarter, the firm reported an interest expense of $500,000 on its outstanding loan of $10 million.
- The company's high-interest debt resulted in substantial interest expense, affecting its overall profitability.
- The interest expense for the year was higher than expected due to an unexpected increase in the loan's interest rate.