The interest paid on______ financing represents a tax deductible business expense.
A)debt
B)retained earnings
C)commercial
D)equity

Question

Quizplus · Accepted Answer

The interest paid on debt financing is tax deductible because it is considered a business expense. Retained earnings and equity financing do not involve interest payments, and commercial financing is too broad of a term to accurately determine if interest payments are tax deductible.

The Interest Paid On______ Financing Represents a Tax Deductible Business