INTEREST EXPENSE Definition

Bookmark and Share

INTEREST EXPENSE is the cost of borrowing funds in the current period. It is shown as a financial expense item within the income statement. An interest expense of zero to <15% relative to operating income, within the consumer products industry, is an indicator of a sustainable competitive advantage.

Learn new Accounting Terms

DISCRETIONARY FIXED COST normally has a budgetary life of under one year, i.e. the cost arises from annual budgetary decisions by management in specific fixed cost areas, e.g. R&D or Marketing.

 

VENTURE CAPITALIST (VC) is a professional equity-based investor. He/She manages one or more venture capital funds looking for suitable high-reward investments. VC investments are normally in riskier start-up or expansion ventures. Being high-risk investors, venture capitalists normally look for a substantially higher rate of return than might be realized in more traditional investments. See ANGEL INVESTOR.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.