Resolved: interest expenses
Hi,
I did not understand why interest expenses were not reflected on the cash flow statement. I've seen it been deducted along with taxes before. How do I know when to deduct them and when to omit them?
Thanks
I did not understand why interest expenses were not reflected on the cash flow statement. I've seen it been deducted along with taxes before. How do I know when to deduct them and when to omit them?
Thanks
1 answers ( 0 marked as helpful)
Hi Jacobo,
We've assumed that the Interest expense is not paid immediately but is rather accumulated in the loan due. This is why the Balance sheet balances. I'll add a note after the lesson. Thanks for giving us heads up about this. Appreciate it.
Best,
Ned
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