The interest expense of short-term loans is reflected in the item of "cash paid for distributing dividends, profits and paying interest" in the cash flow statement. Cash items for distributing dividends, profits and paying interest: This item reflects the cash dividends actually paid by the enterprise, the profits paid to other investment units or the interest on loans and bonds paid in cash. For loans with different purposes, the channels of interest expenditure are different, such as projects under construction, manufacturing expenses and financial expenses, which are all reflected in this project. This project can be filled in according to the records of dividend payable, interest payable, projects under construction, manufacturing expenses, R&D expenses and financial expenses. The cash flow statement is one of the three basic financial statements, which expresses the increase and decrease of an organization's cash (including bank deposits) in a fixed period (usually monthly or quarterly). The appearance of cash flow statement mainly reflects the influence of each item in the balance sheet on cash flow, which is divided into three categories according to the purpose: operation, investment and financing. The cash flow statement can be used to analyze whether an organization has enough cash to meet its expenses in the short term. Announcement No.7 of International Financial Reporting Standards stipulates the preparation of cash flow statement.

2. How to prepare a cash flow statement by accruing interest expenses in the previous year?

Borrow: financial expenses (or projects under construction, etc. ) 10000.

Loan: long-term loan-interest payable 10000.

Three, the enterprise to repay the long-term loan interest, what should be listed in the cash flow statement?

It should be listed in cash to pay dividends, profits or interest.

There are two methods to choose from for the long-term borrowing costs incurred by enterprises:

First, if it can be directly attributed to the purchase, construction or production of assets that meet the capitalization conditions, it should be capitalized and included in the cost of related assets;

Second, other borrowing costs should be directly included in the current profit and loss when incurred.

Long-term borrowing costs are high, so try to borrow less. Long-term loans can be repaid with new debts instead of old ones. There are two common ways of regular repayment: sinking fund and installment repayment. When borrowing long-term loans, decision makers should fully consider the expected cash flow and future interest rate changes of investment projects in order to obtain lower financing costs.

The interest rate of extended information long-term loans is usually higher than that of short-term loans, but borrowing enterprises with good reputation or strong collateral liquidity can still win lower long-term loan interest rates. There are two kinds of long-term loan interest rates: fixed interest rate and floating interest rate. The floating interest rate usually has a maximum and a minimum, which are stipulated in the loan contract. For borrowing enterprises, if it is predicted that the market interest rate will rise, they should sign a fixed interest rate contract with the bank; On the contrary, a floating interest rate contract should be signed.

In addition to interest, the bank will also charge other fees from the borrower, such as the commitment fee charged for the implementation of the revolving credit agreement, and the indirect cost of requiring the borrower to maintain the compensatory balance in the bank. These expenses will increase the cost of long-term borrowing.