Because the expense is a positive number, the interest income is equivalent to the negative number of the expense, expressed as a negative number.

Financial expenses refer to various expenses incurred by an enterprise to raise funds during the production and operation process.

The financial expenses incurred by the enterprise are accounted for in the "Financial Expenses" account, and detailed accounts are set up according to expense items for detailed accounting. Various financial expenses incurred by the enterprise are debited to the "Financial Expenses" account and credited to "Bank Deposits", "Accrued Expenses" and other accounts; when the enterprise generates interest income and exchange income, "Bank Deposits" and other accounts are debited and credited "Financial expenses" account. Extended information

Specific content

(1) Interest expenses refer to the enterprise’s short-term borrowing interest, long-term borrowing interest, bill payable interest, bill discount interest, bond interest payable, and long-term payable introduced abroad. The net amount of interest expenses such as equipment payment interest (except capitalized interest) minus interest income from bank deposits, etc.

(2) Exchange losses refer to the difference between the bank’s buying and selling price and the exchange rate used for bookkeeping caused by the enterprise’s settlement or purchase of foreign exchange from the bank, and the monthly (quarterly) , year) end, the foreign currency closing balances of various foreign currency accounts are the difference between the recorded RMB amount and the original book RMB amount, etc., converted according to the prescribed exchange rate at the end of the period.

(3) Relevant handling fees refer to the handling fees required to issue bonds (except handling fees that need to be capitalized), bank handling fees for issuing bills of exchange, foreign exchange adjustment handling fees, etc., but do not Including handling fees paid for issuing stocks, etc.

(4) Other financial expenses, such as financing leasing expenses incurred when leasing fixed assets.

Baidu Encyclopedia-Financial Expenses