Bond interest paid by a corporation is an expense, whereas dividends paid are not anexpense of the corporation.

Question

Quizplus · Accepted Answer

Bond interest paid is considered an expense because it is a cost the corporation incurs in order to borrow money. Dividends, on the other hand, are not considered an expense because they are a distribution of profits to shareholders and are not necessary for the corporation to operate.

Bond Interest Paid by a Corporation Is an Expense, Whereas