Investment interest expense includes:

Business

1 answer:

Oksana_A [137]3 years ago

8 0

Answer:

A)) interest expense from loans to purchase corporate bonds and interest expense from loans to purchase stocks.

Explanation:

An investment interest expense can be regarded as any amount of interest which is been paid on proceeds of loan that is been used in purchasing investments or securities. investment interest expense can be regarded as been deductible under some particular circumstances.

It should be noted that investment interest expense include;

✓interest expense from loans to purchase corporate bonds

✓ interest expense from loans to purchase stocks.

You might be interested in

A useful way of standardizing financial statements is to choose a ____ and then express each item relative to the _____.

bulgar [2K]

The most useful way of standardizing financial statements is to choose a _<u>base year</u>,_ and then express each item in the period under review relative to the _amounts____ in the base year.

<h3>What are comparative financial statements?</h3>

Comparative financial statements compare a particular financial statement with previous statements. Previous financial statements are presented in side-by-side columns with the latest figures. With this, investors are able to track a company's progress over some periods and compare the company's financial results and performance with its industry competitors.

Thus, financial statements can be compared using financial ratios, which express the relationships between the various items within a financial statement, or using a base year.

Learn more about comparative financial statements and financial ratios here: brainly.com/question/9091091

4 0

2 years ago

The R&D department at Parabola Inc. is developing innovative methods to develop products that would reduce resource wastage.

mihalych1998 [28]

Answer:

b) Lateral Thinking

Explanation:

Lateral thinking is the approach where creative and innovative ways are thought out. In this approach, problem solvers deliberately distance themselves from generic and classic approaches and thus try to come up with brand new ideas and not follow typical thinking patterns.

All the other options can be used to find solutions but they may not necessarily take this innovative approach.

Hope that helps.

6 0

3 years ago

Embree Corp. purchased a four-year insurance policy on May 1, Year 2, for $12,000, effective immediately. The company expensed t

BlackZzzverrR [31]

Answer:

a. Debit to Prepaid Insurance of $10,000

* Option for this question was missing so I have attached a similar question with this answer and answered accordingly.

Explanation:

Insurance purchased for four years was actually prepaid insurance on May 1, Year 2.

The company expensed all amount by positing following entry ( which is a wrong entry)

DR. Insurance Expense $12,000

Cr. Cash $12,000

It should be entered as follow:

DR. Prepaid Insurance $12,000

Cr. Cash $12,000

At the end of the year 2 8 months has been passed for which $2,000 is accrued and it will be recorded, as all the amount is charged to the expense account we will adjusted the remaining amount of $10,000 to correct this mistake.

Now at the end of year 2 the correct entry which will settle the expense and prepaid insurance as well is as follow.

DR. Prepaid Insurance $10,000

Cr. Insurance Expense $10,000