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

Question

Walter Contreras · Accepted Answer

Final Answer : True, Explanation :  Bond interest paid by a corporation is considered an expense because it is a cost incurred by the corporation for borrowing money. On the other hand, dividends paid are not considered an expense because they are a distribution of profits to shareholders and do not involve any cost to the corporation.

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

Definitions

Learning Objectives

Learning Objectives

Related questions