Because the expense is positive, the interest income is equivalent to the expense's negative, which is reflected in the negative number.

Financial expenses refer to all kinds of expenses incurred by enterprises in the process of production and operation to raise funds.

The financial expenses incurred by the enterprise are accounted for in the "financial expenses" account, and a subsidiary ledger is set up according to the expense items for detailed accounting. The financial expenses incurred by the enterprise shall be debited to the subject of "financial expenses" and credited to the subjects of "bank deposits" and "accrued expenses"; When an enterprise has interest income or exchange income, it shall debit "bank deposits" and credit "financial expenses" and other subjects.

The specific content of extended data

(1) Interest expense refers to the net amount of interest expense (except capitalized interest) such as short-term loan interest, long-term loan interest, bill payable interest, bill discount interest, bond payable interest, long-term payable interest, etc. of imported equipment minus interest income from bank deposits.

(2) Exchange loss refers to the difference between the bank purchase price and the exchange rate used for bookkeeping due to the settlement and purchase of foreign exchange from the bank, and the difference between the ending balance of foreign currency in foreign currency accounts at the end of each month (quarter and year) and the original book amount.

(3) Relevant handling fees refer to the handling fees to be paid for issuing bonds (excluding capitalized bonds), the handling fees of issuing banks, and the handling fees for adjusting foreign exchange. , but does not include the handling fee paid for issuing shares.

(4) Other financial expenses, such as financing lease expenses incurred in financing fixed assets.

Baidu encyclopedia-financial expenses