The interest paid on ________ financing represents a tax deductible business expense.

Question

Quizplus · Accepted Answer

Interest paid on debt financing is considered a business expense and can be deducted from the company's taxes, making it a more favorable choice for many businesses. Equity financing, on the other hand, does not involve interest payments and is not tax deductible. Retained earnings and commercial financing are not relevant to the tax deductibility of interest payments.

The Interest Paid on ________ Financing Represents a Tax Deductible