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Definitions from WordNet

Definitions from the Web

Term: Interest Expense

Definition: Interest expense refers to the cost of borrowing money from a lender, typically expressed as a percentage of the loan amount. It represents the payment or expenditure made by an individual or a business entity to compensate the lender for lending funds.

Part of speech: Noun phrase

Senses:

1. Accounting: In accounting, interest expense is an operating expense that is reported on a company's income statement, usually under "finance costs." It represents the amount of interest paid on outstanding debts or loans.
2. Personal Finance: In personal finance, interest expense refers to the interest paid on personal loans, mortgages, credit cards, or any other debt obligations incurred by an individual.
3. Business Finance: In business finance, interest expense is an important factor to consider when assessing the profitability and financial health of a company. It can significantly impact a company's net income and cash flow.

Sample sentences:

1. The company's interest expense increased by 20% due to the acquisition of a new loan.
2. John was concerned about his growing interest expense on his credit card, so he decided to pay off the outstanding balance as soon as possible.
3. XYZ Corporation reported a decline in their interest expense for the current fiscal year, indicating better management of debts.

Related Products:

• Accounting Software
• Personal Finance Books
• Business Finance Textbooks