contestada

the higher a company's earnings relative to its interest expense, the more likely it is that it will be able to pay its

Respuesta :

tutorconsortium275

The higher a company's earnings relative to interest expense, the more likely it is to meet current and future interest payments.

What is the difference between interest expense and payment?

Interest expense is the money a company has to pay after taking out a loan. It is recognized as an expense in the income statement. Accrued interest, on the other hand, is the current liability for the portion of the loan that is currently past due but not yet paid.

How do you calculate interest expense and debt (payable)?

The easiest way to figure out interest expense is to multiply the entire amount of debt owed by the business by its average interest rate. If a company has an average interest rate of 5% and he owes $100 million, the interest expense he pays is $100 million multiplied by 0.05, or $5 million.

To learn more about interest payment visit:

https://brainly.com/question/13312580

#SPJ4

Otras preguntas