INTEREST EXPENSE Definition

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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.

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OPERATING REVENUE is that revenue realized from the day-to-day operations of the entity, e.g., sales revenue.

STABLE MONETARY UNIT CONCEPT allows accountants to ignore the effect of inflation in the accounting records.

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